How do you make your voice heard in the world of politics? You vote, right? Yes, but even then, your vote could be lost in a sea of opposing votes. For instance, this past November we found out as a country that social issues played a much larger part than economic concerns. Mitt Romney was a man that was trusted more than Obama to make better decisions to improve our lackluster economy, but that could not even get him into the Oval Office.
So how can one possibly get the point across that the economy is something that needs to be addressed? Well, PGA Tour golfer and California resident Phil Mickelson is posed to be proactive in showing that high tax rates tend to discourage productivity in many ways. As the Daily Caller reports:
Professional golfer Phil Mickelson told reporters Sunday that he is considering “drastic changes” in response to state and federal income tax hikes — including possibly leaving the United States…
When pressed by reporters about whether those “drastic changes” could include leaving California or even the United States, the four-time major championship winner didn’t foreclose the possibility. But he made clear the reason he is considering such drastic options is the massive tax burden he now shoulders.
“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,” said Mickelson.
In the November elections, California voters approved their Democratic Gov. Jerry Brown’s Proposition 30 that raises taxes on those earning more than $1 million, making them become the state with the highest income tax rate in the country.
COMMENT below: If you were faced with making a decision of where to live, would you go to a state in which you kept more of your money, or would you go to a state in which the government receives more of your income than you?
[This article has been updated.]
What’s that? You don’t think people or jobs will leave when provided with a financial incentive to do so? This:
According to one estimate, 254 businesses across a variety of industries moved all or some of their jobs out of state last year.
California has both the highest state deficit in the country and the highest personal income tax.
Silicon Valley, a unique business center thought to be particularly resilient to economic downturn, has also responded to the poor business conditions. In 2005, for example, Intel decided to build a multi-billion dollar chip-making facility in Arizona because of the state’s favorable corporate income tax system.
Utah and Texas have stolen skilled technology workers from California-based companies like Oracle, Adobe and Apple.
You don’t have to believe in the theory of trickle down economics, but you do have to believe that people and companies will do whatever they can to avoid paying taxes. It’s rational financial thinking to do so if it’s legal, and it’s bad business to do otherwise. If you own a business and you want to be able to pay more employees more money, you don’t want to be hindered by taxes that go to inefficient governments that are incredible at wasting money.