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."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."Promoter Bob Arum is hopeful of arranging a fifth match between Pacquiao and Marquez in the fall, potentially on Sept. 14. Arum's preference is for the fight to be at the MGM Grand in Las Vegas, which is his company's home base.But Arum and Koncz say Pacquiao is balking at the additional money he'd lose to the government if the fight were held in Las Vegas. Arum said Pacquiao would not have to pay taxes if the fight takes place in casinos in either Singapore or Macau."Manny can go back to Las Vegas and make $25 million, but how much of it will he end up with – $15 million?" 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."
Tuesday, February 12, 2013
Curse of the Laffer Curve: Why Manny Pacquiao Prefers His Next Fight Outside the US
Boxing legend Manny Pacquiao seems to have joined the list of celebrities in implicitly denouncing class warfare policies by voting with their feet.
More signs of the curse of the Laffer curve (elasticity of taxable income) in motion.
Mr. Pacquiao appears to have learned his lessons from his domestic experience.
Philippine tax authorities has continually been pressuring, if not harassing, by filing criminal charges against him for "failing to present his tax records"in 2012.
The persecution of Mr. Pacquiao may have been politically motivated. This can be traced to his previous endorsement of the opposition in the 2010 presidential elections, as well as having joined the opposition political party of led by vice president Jejomar Binay (PDP Laban) in 2012. Mr. Pacquiao has also been known ally of the ex-President GMA.
Nonetheless international celebrities opting to vote with their feet, which serves as an implicit tax protest, signifies as more bad news for the welfare-warfare state.