Should Michelle Stay In Hawaii?
Pacific Business News says Hawaii isn’t the place for a multi-millionare like Michelle Wie.
Our income tax isn’t rich people friendly it seems. PBN says most golfers live in Nevada or Florida where income isn’t taxed.
A move to the Mainland would certainly smooth out the logistics of tournament travel, but leaving Hawaii could also save Wie nearly as much money as she could pick up by winning a major tournament. With its 8.25 percent tax on incomes above $40,000, Hawaii would take $825,000 of Wie’s estimated $10 million, plus a big chunk of her tournament winnings.
“If you’re going to live in Hawaii because you like the beauty or diversity, that’s great,” said Ron Heller, a tax attorney in Honolulu. “But nobody is going to pick Hawaii on a tax basis. From a pure income-tax perspective, Hawaii is probably not a good place to establish residence.”
Legally, a person who spends 200 days a year in Hawaii is considered a resident. The Ladies Professional Golf Association runs tournaments from February through December, and even with a relatively light schedule, it’s unlikely Wie would be in Hawaii much of the year, making it easy to claim a residence elsewhere.
For most wealthy people with second and third homes, the challenge is staying out of Hawaii at least 165 days a year. But the state tax department says it has never prosecuted anyone for trying to avoid Hawaii taxes by claiming a legal residence elsewhere.
Tax-dodging is “the American way” in industrial circles. When you enter the realm of the obscenely weathly this is the kind of advice your financial advisors will give you. Does this make it right?
Is Hawaii really that important to Michelle Wie’s image?
Pacific Business News: Why Michelle Wie may have to leave
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