Via the TaxProf comes the story of Filipino boxer Manny Pacquiao declining to have his next fight be in the United States.
On a related note, State Farm Insurance may be getting ready to leave uber-taxing Illinois for the comparatively lower taxing Texas.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."
Insurance chain State Farm is reportedly buying up substantial workspace in Texas, which may signal a coming exodus from the company's home state of Illinois. ...California is suffering from a similar trend...for similar reasons.
At the end of 2010, in a special session, the Illinois Legislature passed a 67% hike in its corporate and personal income tax. The state is struggling with a structural deficit and its credit rating was recently lowered. The state now has the worst credit rating in the country. A number of businesses have floated the idea of leaving the state. A move by State Farm, however, would devastate the downstate economy.
Tax policies do matter. Higher tax rates will drive the wealthy into different areas. They....like most of us....don't mind paying their fair share to support legitimate government activities. But an unfair share will cause them to react accordingly.