The lesson that high taxes hurt business and, by definition, the communities in which those businesses reside is one that is proved every day by high-tax states like New York. That this applies not just to the financial industry and other victims of confiscatory fiscal policy but to all sorts of citizens as well is an issue rarely explored in the mainstream press. So it was fascinating to note that in the follow-up coverage to the first boxing match held at Yankee Stadium in 34 years this past weekend, the reason why promoters said a follow-up was unlikely was rooted not in technical difficulties or whether the sport (which was once, along with baseball, one of the only two truly national sports in the country) no longer had the sort of following that could routinely fill large outdoor stadiums.
Instead, according to Yankees executive Lonn Trost, the real problem is taxes. As the New York Post reported today, “the tax on a fighter’s purse is significantly higher for non-residents of New York than it is in other states, which would make it difficult to bring a match like the proposed superfight between Floyd Mayweather, Jr., and Manny Pacquiao to Yankee Stadium.”
Trost went on to state that “Cotto-Foreman [the fight that took place this past weekend] could come here because the boxers felt they wouldn’t be overtaxed because they’re residents. We’d love to do [Mayweather-Pacquiao], but I believe both of them are non-residents and the tax could be as much as 13 percent on the purse, where the tax out in Vegas is zero. That’s a big difference.”
Personally, I’m not much of a boxing fan (and my pride in being Jewish was not enhanced by the prospect of Israeli rabbinical student Yuri Foreman punching out Puerto Rico’s Henry Cotto, who won the fight). But while liberal advocates for higher taxes routinely claim they are doing so to help ordinary New Yorkers, they ought to consider that in making it unattractive for fighters to perform here, they are actually robbing the people from the South Bronx and elsewhere in the city who work in the many jobs created every night Yankee Stadium is open. The failure to bring more such exhibitions to the city illustrates the simple truth that, once again, liberal economics has scored a technical knockout on the economic well-being of working-class New Yorkers.