1/31/2013

Millionaire athletes fleeing California's taxes

So Obama doesn't think that taxes effect behavior?  Well, here are some people who are voting with their feet.  The higher federal tax rate makes people even more sensitive to the changes in state taxes.  From Fox News:
The Golden State's new 13.3 percent income tax on top earners prompted golfer Phil Mickelson to say earlier this month he was considering a move, and according to the accountants who advise millionaire athletes, he was just saying what a lot of jocks were already thinking. Federal taxes on the top income bracket just rose by roughly 5 percent, and, while there's nothing rich athletes can do about that, they are paying attention to which states dip into their game checks — and how much they take. 
They’re going to have an exodus of people,” said John Karaffa, president of ProSport CPA, a Virginia-based firm that represents nearly 300 professional athletes, primarily in basketball and football. “I think they’ll see some [leave California] for sure. They were already a very high tax state and it’s getting to a point where folks have to make a business decision as well as a lifestyle decision.” . . . .

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2 Comments:

Blogger Brad_in_MA said...

Dr. Lott,
Here in Massachusetts, Boston Scientific is laying off 1,000 workers. The savings will be used to pay for the estimated $75 million tax hit from excise taxes on medical devices.

1/31/2013 8:23 AM  
Blogger Blaine Holzer said...

I, for one, wouldn't want to live in California or in New York. The thought that some of my (and my wife's) hard earned money would go to states with "people" like Cuomo and Feinstein in leadership positions makes me nauseated. I HOPE people will boycott these states in all ways and let it be clearly known to the world - that a big part of the reason is that these states have passed unconstitutional laws that put law abiding residents at risk.

1/31/2013 9:23 AM  

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