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Report: Mickelson facing 61-percent tax rate on winnings

Phil Mickelson
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Perhaps Phil Mickelson will consider a move after all.

Six months after Mickelson created controversy with comments critical of the federal income tax rates as well as those in his home state of California, the newest major champion will reportedly keep much less than half of the overall proceeds from his successful two-week stint in Scotland.

A week after claiming the Scottish Open, Mickelson came from behind to win the Open Championship Sunday at Muirfield for his fifth career major title. Between the two events, he accrued £1,445,000 in on-course earnings, which equates to about $2,167,500. According to a Forbes report, though, Mickelson's effective tax rate on his winnings in Scotland will be a whopping 61.12 percent.

The breakdown goes as follows: the United Kingdom will tax all of his earnings above £150,000 at a 45-percent rate, in addition to taking a 45-percent piece of Mickelson's endorsement income and any bonus money he receives as a result of his two wins in Scotland. Mickelson will also forfeit 13.3 percent to California state taxes, 2.9 percent in federal self-employment taxes and 0.9 percent in a federal Medicare surtax, dropping his take-home pay to about $842,700.

When expenses are taken into account as well as a cut of the proceeds for caddie Jim 'Bones' Mackay, Mickelson will likely retain closer to 30 percent of his overall winnings from his two-week stay in Scotland.

It remains to be seen if the newest Open champion will move his family at some point in the near future to a state like Arizona, where Mickelson attended college and a state whose income tax rates are much lower than California's, or Florida, where many professional golfers (including Tiger Woods) have taken refuge due to its lack of state income tax.