If You Tax Something, You Get Less of It

In this previous CD post, it was reported that world-class Jamaican sprinter Usain Bolt won’t be competiting in this weekend’s Aviva London Grand Prix because of a new U.K. tax rule
that imposes a top rate of income tax of 50 percent on athletes, not just on the income earned in the U.K., but also on a proportion of their worldwide sponsorship and endorsement income.

Now it looks like some of the leading professional golfers aren’t so sure they want to play in this year’s Ryder Cup, scheduled to take place in Wales in October.  The European Tour’s director of public relations said today taht the tax rule was “seriously hampering our efforts.”

You have to wonder, couldn’t they have predicted this would happen?

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About Mark J. Perry 262 Articles

Affiliation: University of Michigan

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.

He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.

Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.

Visit: Carpe Diem

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