Posted 21 January 2013 - 01:02 PM
There is no chance that Phil is paying a 62% tax rate. First, like it or not, the tax code is written to protect the wealthy - just think back to the debate over Mitt Romney's tax rate and the disclosure that his effective tax rate was around 13% on income of about $15 million. Secondly, most state taxes are deductible from your Federal tax burden, so your overall rate is lowered - and as noted on other posts, winnings in other states are taxed in that state and deducted from the California tax assessment. Thirdly, social security taxes are 12.4% on the first $113,000 of income - thus exempting Phil's other $47 million from that tax. Taking into account all of the deductions that are allowed under the current tax code and the availability of really good tax lawyers and accountants, I would be surprised if his overall effective tax liability is even near 30%.
Everything else being equal, the State of California has determined that it needs that tax revenue to provide services to its citizens (including the operation of municipal golf courses). If Phil doesn't like it, he can easily move anywhere else in the world he wants to go. Good for him.