Phil Mickelson has been roundly castigated for daring to comment on the amount of taxes he pays. He calculates it at 63 percent. Others have said that he really only pays 53 percent (btw, I note that KPMG is his sponsor — couldn’t they tell him what percent of tax he pays?). Others say he should stop the “whining.” Apparently, it got so bad, he felt he had to issue an apology.

Where have we come to as a country that a person can’t complain that more than 50 percent of his income is skimmed by the government?

How Much Is Too Much?

Let’s go with 53 percent as the correct number. That’s just the tax on income. It doesn’t take into account sales taxes, property taxes, fuels taxes, and the list goes on. How much is too much? And what about the “tax” imposed on individuals and companies that must hire accountants (like PJCo) just to help them navigate the complicated tax world. It’s really getting to be ridiculous.

Federal taxes account for the biggest bite when it comes to income taxes. But state income taxes are a significant part of the overall income tax picture. And it’s not all about rates either. State income taxes present a much bigger level of complexity than the federal. Individuals and businesses have to also figure out where they should be filing tax returns. They may have nexus in another state by virtue of their own travels or by employee activities or even by Read More