Staples Center has offered $20 million for the upcoming Mayweather-Pacquiao fight — but they aren’t going to get it, since that would mean the fighters paying upwards of 10.55% income taxes to the state of California. Even though this event could mean millions to the economy of Los Angeles, the negative incentives are so high that it’s likely that the fight will be held in Texas or Las Vegas — where there isn’t a personal income tax.
We really need to think about how California is funded. Driving all the rich away isn’t working very well.
Read more here.