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 competing 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 that the tax rule was "seriously hampering our efforts."
You have to wonder, couldn't they have predicted this would happen?
HT: Chris Silva
Update: Tiger Woods’ reluctance to accept a Ryder Cup wild card may in part be due to a £1m tax bill he could face by playing.