What Happens When California Loses All of Its Athletes?
By sierras236
@sierras236 (2739)
United States
January 22, 2013 1:03pm CST
I am curious. What happens when the athletes of California start ditching the state due to tax bill sticker shock?
http://sports.yahoo.com/blogs/golf-devil-ball-golf/phil-mickelson-warns-drastic-changes-because-state-federal-165909894--golf.html
If what he says is true which is probable with the new taxes in California, 63% of his income will disappear to taxes.
That's pretty excessive. This might start other athletes thinking. If there is a mass exodus, then California may no longer have enough high income earners to balance the low income benefit demands.
4 responses
@divineathena (1746)
• United States
22 Jan 13
I am not interested in athletes. Many here have been talking about why we really those in colleges and universities. That man in the article already makes a lot though. 63 percent tax is not going to make him middle class. Some weeks ago, Yahoo had did an article on how million French people are selling their properties in France to move to California. Now it seems that Yahoo is talking about something totally different. I don't care if this man stays or leaves. But yes, government must fix the loopholes in business' tax laws so that Apple and others pay what they owe.
We already have way too many high income earners. They just don't pay correctly. Once again, I am talking about fortune 500 companies.
@sierras236 (2739)
• United States
22 Jan 13
Not a problem on the typos.
No, it won't make him middle class but all of his money comes from private income sources. Thus, it doesn't how much money he makes in regards to everyone else. The fact that the tax rate is that high should scare you because tax rates could easily raise for everybody.
Once the "rich athletes" leave, the pool of income that California can draw from is significantly smaller. This isn't looking at the loss of income for businesses in a number of industries.
So, his leaving will have an impact on California's economy.
If enough of these athletes decide to leave (this is a billion dollar industry), then California will become so bottom heavy that its only choice left is a major tax increase on the middle class along with a huge reduction in Government benefits/pensions.
While you may not personally support athletes, the fact remains that they do have a huge financial influence on a State's economics.
France will soon have the same problem. A reduction in the number of "rich" and even with the new taxes, they may find themselves collecting far less than they anticipated and might even actually lose revenue.
@divineathena (1746)
• United States
24 Jan 13
Income tax itself is the corporate tax for big businesses. We sometimes use the terms interchangeably. Most of those companies pay taxes in another state and not where they are actually located. They take advantage of a loophole that exists in the state's law. For instance, Apple has its investment section in Nevada, the state where corporate tax is absent. This is allowing them to avoid paying anything to California. The entire America is losing trillions of dollars in tax because of these companies.
@ReViewMeMedia (3785)
• United States
23 Jan 13
Don't worry, the Hollywood celebs who love Obama will foot all the taxes, oh wait, some of them are renouncing their U.S. citizenships and high-tailing it overseas too!
@sierras236 (2739)
• United States
23 Jan 13
Easy to figure out where they aren't going.
Sure, they talk a big game but when it comes to actually paying, that's a whole different story.
@sierras236 (2739)
• United States
24 Jan 13
Ironically, States are offering incentives to get movies in their area. This is how you avoid taxes without looking like you avoid taxes.
@bobmnu (8157)
• United States
23 Jan 13
I don't know how many times I have told people and written about it but the Federal Income Tax was approved by the people because it was to be a tax on the rich. When you tax the rich bad things happen to the rest of us. Several years ago the government decided to put an extra tax on luxury items such as yachts Nice way to raise money from the rich, right? Wrong, the people didn't buy the items with the extra tax or they went over seas to purchase these items, the result was these businesses closed. In 2009 the pressure was on Wall Street not to pay bonuses and it cost New York State and New York City Billions in taxes and was a major hit to the working class in New York City. It seems that when the ruling class raises taxes on the rich we all feel the hurt.
@sierras236 (2739)
• United States
23 Jan 13
Yet, these are the same people who claim that raising taxes have no real effect on the economy and that the rich will gladly pay a little extra. This is of course ignoring the fact that the rich will pay less for a luxury item if they find it cheaper overseas.
@lampar (7584)
• United States
24 Jan 13
It is not going to happen at all. They love California state and all these beaches and all these women in bikini over there. State tax bill sticker shock is not such a big shocker when their accountants begin to dig out hidden provision in the state tax code that can shield them from the superficial tax hike, there is always way to go around in state government tax bill.
@sierras236 (2739)
• United States
24 Jan 13
Florida has beaches and Key West. Plus, the weather to play nearly all year round (except maybe February). It also has golf courses, football, basketball, and soccer. But absolutely no State income tax. That might look pretty good when compared to over 50% with California.
But you could be right, there maybe something in there that would allow him to circumvent the tax.
From what I understand, there is a corporation loophole where some corporations are paying zero taxes and some are getting a refund.
@lampar (7584)
• United States
24 Jan 13
Believe me , my friend! Millionaire athelets are very smart people, they known most of the hook and loop in the tax book if not all to protect their wealth from tax-man. Many of them have personal accountants and banks out there to take care of all these for them, other than their team owner. Some are making so much that 50% tax bill can not even make a dent in their already extremely high income and contract.