This in from the Honorable Michelle Steel, elected member of the State Board of Equalization…
California is down and out when it comes to hosting one of the biggest boxing matches of the year. The Los Angeles Times recently reported that Manny Paquiao’s business manager advised him against fighting in California because of high taxes. For those of you not familiar with boxing; Paquiao is currently the WBO World welterweight champion, IBO and Ring Magazine light welterweight champion, and is rated by Ring Magazine as the #1 pound-for-pound boxer in the world.
Paquiao’s manager calculated the boxer would lose $3.5 to $5 million of his winnings to the state’s 10.55% income tax rate if his March fight against Floyd Mayweather Jr. were held in California. That means a loss of millions to the city of Los Angeles, where agents for the two boxers were negotiating with the Staples Center to host the match.
This big fight would generate $10 to $15 million in Las Vegas according to a city official there. For a city like Los Angeles with a $98 million budget gap, that would’ve been helpful. But like everyone else these days, boxers have learned: If you want to keep the money you earn, stay out of California.
Like Joel Fox of the Small Business Action Committee said on Fox and Hounds Daily: "High tax rates clearly have an impact on where high-income earners live and where they work. Even if that work consists of one hour or so enclosed in a boxing ring.” How can we expect high earners to come to California when our policy makers keep hitting below the belt?