Do taxes change behavior? Ask Manny Pacquiao
Taxes are influencing where boxing star Manny Pacquiao will have his next fight, and it's bad news for Las Vegas.
Manny Pacquiao's chief adviser insisted Monday that the Filipino superstar's preference is for his next bout – a fifth fight against Juan Manuel Marquez – to take place away from Las Vegas, with the off-shore Chinese gambling resort of Macau emerging as the "favorite."
The Dec. 8 fight between Manny Pacquiao and Juan Manuel Marquez was held at the MGM Grand in Las Vegas. Michael Koncz told Yahoo! Sports that the 39.6 percent tax rate Pacquiao would face if he were to fight again in the U.S. makes a fall bout in Las Vegas "a no go." …
"Manny can go back to Las Vegas and make $25 million, but how much of it will he end up with – $15 million?" (Promoter Bob) Arum said. "If he goes to Macau, perhaps his purse will only be $20 million, but he will get to keep it all, so he will be better off."
Even though Pacquiao would make $25 million if the fight was held in Vegas, you know who else would have benefited? Workers in hotels and restaurants who would have benefitted from the extra tourists.
This is yet another example of how punishing the "rich" hurts folks at all levels of the economy and a reminder for liberals like Steve Sebelius that higher taxes do indeed hurt businesses.
(h/t Americans for Tax Reform)