Phil Mickelson apologizes for his past comments on taxes, it's possible retirement is still likely for the golfer due to high rates in California.
Talk on the golf course is usually kept to the sport itself, but Phil Mickelson changed that when he made some comments about changes in federal and California state tax code that could affect his future.
According to the LA Times, Mickelson walked back his comments on Wednesday, saying that it was dumb to bring up the tax issues, as well as the opinion that he could not be a part of the San Diego Padres' new ownership group due to the tax issues.
"You know, I've made some dumb, dumb mistakes and, obviously, talking about this stuff was one of them," Mickelson said.
Mickelson said after Sunday's PGA event in La Quinta that he may need to take "drastic measures", like leaving the state of California, because the financial burden might be too large. He said that it was possible he could play in fewer tournaments or retire due to the increases.
"My apology is for talking about it publicly, because I shouldn't take advantage of the forum that I have as a professional golfer to try to ignite change over these issues."
On Wednesday, Mickelson compared his comments to one of his worst golf moments and said that he should not have made his views public.
"This reminds me a lot of Winged Foot in 2006, where I hit a drive way left off the tents. So this happened to be way right," Mickelson said, a playful reference to his position on the higher taxes. "I've made some dumb, dumb mistakes. And obviously, talking about this stuff was one of them."
Using his tax comments as an analogy, Mickelson said, "I think I'm going to learn my lesson and take a wedge and get it back in play."
Mickelson spent about 40 minutes preparing for his press conference before speaking to reporters and also spent time talking with his publicist and a PGA Tour media official.
"Just trying to gather my thoughts," he said.
Mickelson realized afterwards that his comments probably did not come off in the right way and made it look as if he was unsympathetic or whining about his job.
"I think it was insensitive to talk about it publicly to those people who are not able to find a job, that are struggling paycheck to paycheck," he said.
In the past, players like Tiger Woods and others have moved to Florida to avoid paying such taxes. Mickelson and his family live in the San Diego area and he has said he would like to stay if he can.
"I'm not sure what we're going to do yet," Mickelson said.
Tiger Woods, commenting on Mickelson's complaints, was quoted by Bloomberg News saying, "I moved out of here [California] in '96 for that same reason. I understand what he was, I think, trying to say."
According to ABC News.com, Professor Len Burman of Syracuse University, a tax expert and Forbes contributor, questions whether Mickelson could really be paying 63 percent.
My first reaction is that Phil should talk to his accountant," wrote Burman yesterday on Forbes' website. Mickelson's tax rate, argues Burman, has to be lower than 60 percent. Allowing for the phase-out of itemized deductions, and including a new 0.9 percent surtax enacted to help finance Obama Care, Burman figures a gross rate for Mickelson of 57.9 percent. After, however, allowing for other deductions, including 1.45 percent of payroll taxes, Burman says the golfer's net tax bite should be about 52 percent of marginal earnings, state and federal tax combined."
When asked, Mickelson said he never had any problems paying his fair share for the money that he makes.
Mickelson: "I've never had a problem paying my fair share. I don't know what that is right now, but I've never had a problem paying my fair share."
Mickelson was raised in the San Diego area and attended Arizona State University. He previously said that his tax payments this year could increase to "62 or 63" percent of his total income.
"I've said some stupid things in the past that have caused a media uproar before," he said. "It's part of my life, and I'll deal with it."
The original comments came on Sunday after Mickelson shot a final round 66 and finished in a tie for 37th place at the Humana Challenge
"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 it doesn't work for me right now," Mickelson said.
Mickelson went into detail about a potential minority stake in the San Diego Padres, who were purchased by an ownership group for $800 million last year.
"San Diego is where a lot more things, it's where I live, it's where the Padres thing was a possibility, and it's where my family is," Mickelson said. "And it just seems like a better fit than right here off of 18 on Palm Springs."
According to ESPN.com, in November, voters in California voted for Proposition 30, which increased state taxes for the first time in nearly 10 years. According to the report, the vote boosted the state tax rate on incomes of more than $1 million from 10.3 percent to 13.3 percent.
Mickelson made his season debut at the tournament over the weekend, which was his first competition since playing in November at the HSBC Champions in China.
"I was rusty starting the year," Mickelson said. "I had a great four days here where I can work on my game with perfect weather and wonderful golf courses, where I could build some momentum. Heading into San Diego, I feel a lot more confident."
Mickelson is one of the most decorated golfers on the tour and has won 40 career PGA events while earning $67,677,098 on the golf course. The 42-year-old has won four majors and also pulled in over $43 million in endorsements in 2012, ranking seventh on the Forbes magazine list of highest-paid athletes, slated behind boxers Floyd Mayweather and Manny Pacquiao, Tiger Woods, basketball players LeBron James and Kobe Bryant and tennis' Roger Federer.
Mickelson first spoke about the issues earlier in the week when discussing the AT&T Pebble Beach National Pro-Am and the subject of Steve Stricker's decision to play fewer tournaments.
"I think that we're all going to have our own kind of way of handling things, handling time in our career, our family, handling what's gone on the last couple of months politically," Mickelson said to Golf Week. "I think we're all going to have to find things that work for us. And it's not surprising at all. It makes perfect sense for a number of reasons, not just the ones that he gave about spending more time at home. I totally get it."
