What happens in Vegas, stays in Vegas — unless you’re Manny Pacquiao.
The legendary Filipino boxer reportedly wants his next bout — a fifth fight against Juan Manuel Marquez — to be held far away from Sin City and the United States’ 39.6 top federal tax rate, with the offshore Chinese gambling resort of Macau emerging as the “favorite,” Yahoo! Sports reports.
Michael Koncz, Pacquiao's chief adviser, said Monday that the nearly 40 percent tax rate he would face on most of the purse if he were to fight again in the United States makes a bout this fall a “no go.”
I don't blame Pacquiao. I would do the same thing if I were he. But there's also another side to this. Think about the income loss to Las Vegas, the MGM Grand where the fight would be held, and the state of NV. Those losses can be attributed to the confiscatory tax policies which Pacquiao is wisely seeking to avoid.http://www.foxnews.com/sports/2013/02/15/manny-pacquiao-reportedly-wants-next-fight-in-china-because-high-us-taxes/With the millions of dollars in savings factored with the relatively short career of a professional boxer, more non-resident boxers could soon follow Pacquiao’s lead for greater economic freedom and financial security. Since most professional boxers are non-citizens or non-residents, the exodus would see the economic burden worsen for American cities that host boxing bouts of this magnitude.
Fewer boxing matches per year would mean fewer vendors, a decrease in tourism, and less money being spent in host cities. Hosting a major sporting event has proven to create jobs and insert economic life within the city. The federal government needs to follow the examples being set by GOP governors seeking to reduce their respective state’s income tax burden or risk losing investments across every industry.
At the end of the day, people migrate and invest in places where they will receive the most for their services and skills. The higher the income tax, the less return these same people will see. By continuing to have this excessively high income tax, the U.S. continues to discourage businesses and workers looking to make profitable investments.http://www.atr.org/high-tax-rate-former-welterweight-champ-a7474