Why do you think Tiger Woods lives in Florida?
In November, voters in California approved a ballot measure raising the top rate on income over $1 million to 13.3% (the increase applies retroactively to last year). ... Mr. Woods grossed $56.4 million in 2012. As a Floridian, he will keep about $7.5 million that he otherwise would have owed to the state of California. His net tax savings over his 16-year career come to about $100 million. Mr. Mickelson last year earned $60.7 million. Paying the 13.3% California rate, he will owe the state $8 million.That takes Mickelson down to $52.7 million, putting him behind Woods, when he was ahead of him on the money list. Aggravating! (I know, I'm failing to take account of the way state taxes are a deduction on your federal income taxes and everything else that affects after-tax income.)
The benefit of living in a state without an income tax can be diminished by the "jock tax" that states impose on money earned by athletes when they're playing or training in the state. (Luckily for baseball players, spring training is in no-tax Florida or low-tax Arizona.) But in sports like tennis and golf where athletes can train anywhere in the world, a preponderance happen to migrate to states without an income tax.These celebs — with their endorsements — need good PR, as the Mickelson slip proved. State tax proponents could get proactive and actively shame the sports stars who live in Florida without an adequate cover story.
For instance, Serena and Venus Williams grew up in Compton, Calif., but moved with their father to Florida in the early 1990s.