Golfer Phil Mickelson loses 61% of his winnings to taxes on: Today at 12:56:19 PM Started by Fragment - Last post by Fragment Phil Mickelson caught some heat this past January when he complained about his supposed 60% tax rate. I even had a little fun at his expense. But it appears that sponsor KPMG may have taught Lefty a little more about taxes than we professionals have given him credit for knowing. Mickelson capped a dominant fortnight in Scotland by shooting a final round 66 to come from behind and win The Open Championship. He also won the Scottish Open the previous week. For his two weeks of play, the world’s best golfer (rankings be damned) earned £1,445,000, or about $2,167,500. The United Kingdom, which has authority to set Scotland’s tax rate until 2016, graduates to a 40% tax rate when income hits £32,010 then 45% when it reaches £150,000. Mickelson will pay £636,069 ($954,000, or 44.02%) on his Scottish earnings. But that’s not all. The UK will tax a portion of his endorsement income for the two weeks he was in Scotland. It will also tax any bonuses he receives for winning these tournaments as well as a portion of the ranking bonuses he will receive at the end of the year, all at 45%. It is a significant amount for Mickelson, with only Roger Federer and Tiger Woods earning more among athletes from endorsements and appearances. Mickelson ranked No. 7 overall with $48.7 million in Forbes’ June list of the world’s highest-paid athletes. The UK is one of few countries that collects taxes on endorsement income for non-resident athletes that compete in Britain (the US also does). http://www.forbes.com/sites/kurtbadenhausen/2013/07/22/phil-mickelson-wins-historic-british-open-and-incurs-61-tax-rate/

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