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The Lake News Online
  • My view: Money trail through higher taxes

  • Phil Mikkelson, a professional golfer worth millions, threatened a few weeks ago to leave his home state of California because state and federal taxes of 60 percent were burdensome. California’s state income tax recently increased from 9.3 percent to 13.3 percent on income of more than $1 million.
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  • Phil Mikkelson, a professional golfer worth millions, threatened a few weeks ago to leave his home state of California because state and federal taxes of 60 percent were burdensome. California’s state income tax recently increased from 9.3 percent to 13.3 percent on income of more than $1 million.
    Under pressure from critics, he recanted. He did say, however, he would have to re-evaluate the way he handles his personal finances.
    Tiger Woods left California in 1996 for Florida, which has no state income tax, for similar reasons. According to one source, Tiger grossed 56.4 million in 2012 and was able to keep about $7.5 million that he otherwise would have owed the state of California. Dave Ramsey, one of most well respected, conservative financial gurus in the country, recently talked about what he said was a mass exodus of wealthy Californians to less-taxing states. He noted that wealthy Californians are leaving behind people who will have to pick up the burden of making their state function.
    Middle- and high-income earners fuel the economic engines of our states, and our country. According to the Internal Revenue Service for 2010, the top 1 percent of income taxpayers ranked by adjusted gross income of at least $380,354, paid 38.02 percent of federal personal income taxes. The top 5 percent, ranked by adjusted gross income of at least $159,619, paid 58.72 percent of federal income taxes.
    Logic would dictate that if you take money away from any of us through higher taxes, that takes money out of general circulation. Ironically, we will be less likely to contribute to agencies and organizations who actually help the people who need the help.
    Daughter Kelly is an event planner for Junior Diabetes Research Foundation in Des Moines. It is she who reaches out to corporations and individuals through fundraisers for donations to JDRF. She voted for our current president who, along with his party, wants to raise taxes on the same people and corporations who donate to JDRF and who, in effect, pay her salary. I’ve suggested that she not bite the hand that feeds her.
     
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