Imagine a curve. On the left hand side the value is zero. Then, as you move from left to right, the slope goes up peaking somewhere then slides down back to zero. That’s the Laffer Curve.
If you tax income at 0%, you realize $0.00 of tax revenue. If you tax income at 100% you will also realize $0.00 of tax revenue; no one works for free. In between is the sweet spot.
And it appears that, for Lefty, a 63% take is just too much:
LA QUINTA, Calf. — Phil Mickelson started his 2013 PGA Tour season at the Humana Challenge in partnership with the Clinton Foundation with a tie for 37th place. But after a final-round 66, Mickelson did more than hint that the 2014 season may see some big changes for the World Golf Hall of Famer.
“Well, it’s been an interesting offseason. And I’m going to have to make some drastic changes,” Mickelson said at the Palmer Course at PGA West in La Quinta. “I’m not going to jump the gun and do it right away, but I will be making some drastic changes.”
And what changes might he be making?
PHIL MICKELSON: Well, it’s been an interesting offseason. And I’m going to have to make some drastic changes. I’m not going to jump the gun and do it right away, but I will be making some drastic changes.
Q. Meaning leaving from California?
PHIL MICKELSON: I’m not sure.
Q. Moving to Canada?
PHIL MICKELSON: I’m not sure what exactly, you know, I’m going to do yet. I’ll probably talk about it more in depth next week. I’m not going to jump the gun, but there are going to be some. There are going to be some drastic changes for me because I happen to be in that zone that has been targeted both federally and by the state and, you know, it doesn’t work for me right now. So I’m going to have to make some changes.
And why does he think he needs to make these changes?
PHIL MICKELSON: Yeah. I’ll probably go into it more next year or next week. But if you add up, if you add up all the federal and you look at the disability and the unemployment and the Social Security and the state, my tax rate’s 62, 63 percent. So I’ve got to make some decisions on what I’m going to do.
France learned it. And now California is about to. When you tax the living snot out of people they are going to react. They’ll either move or quit.
And that results in $0.00 tax revenue.
I quite agree – it’s too much of a burden for him – he should absolutely stop himself from getting richer because Elvis forbid, someone else might gain as well. Why even work when you’ll only take home $48million instead of maybe $59million. Once can only carry citizenship so far after all.
Why even work when you’ll only take home $48million instead of maybe $59million. Once can only carry citizenship so far after all.
So Moe, I know our system is progressive, but serious, are we to tax people solely based on the amount that they make?
Serious story. Obama was elected on a Tuesday. Wednesday morning at 9:03 I got an e-mail from my financial adviser asking for a meeting. After an hour or so conversation his advice?
Either quit working -retire early- or negotiate a demotion trading salary for leisure. The second piece? Just give the money away. When you are being taxed at 65% on the dollar, just give it away so that at least you have control over all 100%. And by giving a hundred to my charity, it only costs me 35.
In summary – quit or give it away. That is what we have become.
In any event, the point is the same; when taxes become so onerous as to become absurd, the wealthy have ways out.
Pino,
The question is, will Jerry Brown and
Barak Obama get more tax money from a rich guy like Mickelson by raising his taxes ? If Mickelson does what he says, then everything you and I have been telling the hard core leftists will come true . Bottom line, revenue will fall . If this is really about raising more tax money, which it ain’t .
However, I have heard that Mickelson is now backing down and walking back his remarks . I wonder who took him to the woodshed and what they said .
The question is, will Jerry Brown and
Barak Obama get more tax money from a rich guy like Mickelson by raising his taxes ?
When it comes to the cap gains tax, Obama knows he loses revenues when he raises it. But he doesn’t care, he simply thinks its more fair.
If Mickelson does what he says, then everything you and I have been telling the hard core leftists will come true .
California is hemorrhaging citizens for years now. We need to bug Sean Hazlett and get him to move to Texas or Florida or something 😉