Following his final round of the U.S. PGA Tour’s Humana Challenge in La Quinta, California, professional golfer Phil Mickelson was asked for an opinion about the reduced schedule of some of his colleagues.

“I’m not exactly sure what I’m going to do yet.  If you add up all the federal and you look at the disability and the unemployment and the Social Security and the state, my tax rate is at 62 to 63 percent. So I’ve got to make some decisions on what I’m going to do.”

Michelson added, “I’m not going to jump the gun, but there’s going to be some drastic changes for me, because I happen to be in that zone that has been targeted federally and by the state.  It doesn’t work for me right now, so I’m going to have to make some changes.”

Mr. Mickelson, a resident of California, was reacting to decreased playing schedules (and income-earning opportunities) of some professional golfers resulting directly or indirectly from new or increased taxes in 2013 including the following:

  • increase in the maximum federal income tax rate from 35% to 39.6%
  • limiting of itemized deductions
  • increase in Social Security tax from 4.2% to 6.2%
  • imposition of 3.8% Medicare surtax
  • increase in dividend and capital gains taxes from 15% to 20%
  • California’s Proposition 30 which raised state taxes on income over $1,000,000 from 10.3% to 13.3%

Perhaps the world’s most famous golfer, Tiger Woods, wasn’t shy in sharing his view of Mr. Michelson’s comments.  “I moved out (of California) in ’96 for that reason.  I understand what he was, I think, trying to say.”

In theory governments seek to raise revenue by increasing rates.  In reality taxpayers respond to economic disincentives by adjusting their behavior causing governments to lose revenue.  Should Mr. Michelson leave California the state will earn 13.3% of $0 instead of 10.3% of the estimated $47,800,000 he earned in 2012.

It is beyond clear that the most effective way to raise revenue is to lower tax rates and broaden the tax base.  Instead “leadership” favors political pandering over economic prudence by insisting on raising rates in a desperate attempt to win votes by demonizing success.  Hostile states such as California continue to lose jobs and population while tax-friendly states like Texas and Florida continue to gain.

Does “leadership” not know or not care?  Are these the people who are the best stewards of taxpayer money?  Are these the folks who are best positioned to solve economic problems?  Then again are these people really to blame?  Who voted for them?  Who put them in office?

American taxpayers and voters (bearing in mind not every voter is a taxpayer) have a responsibility to hold our elected officials accountable.  It is our job to ensure they are doing an effective job of governing.  As Thomas Jefferson famously said, “The price of liberty is eternal vigilance.”  Economic policies designed to punish success and harness political power are doomed to fail from the start.  We must be outraged by them – not vote for four more years of them.

So too as a bad golf shot can sometimes provide a satisfactory outcome let’s hope bad economic policy can result in jobs, economic growth, increased revenue and decreased deficits/debt.