Death and Taxes
I recently came across a post in regards to Manny Pacquiao refusing to fight on US soil due to the high tax rate applied to his earnings. From his last fight, the total payout was $24 million (he lost to Marquez) -- but after tax, it can turn out to be $15 million. At 39% tax rate, it becomes stupid to think about fighting on US soil. Incidentally, there are reports of Americans giving up their citizenship for other countries to "evade" tax -- One being Eduardo Saverin, who saved over 60 million dollars in tax when Facebook IPO'd. He now lives in Singapore. Looking at tax rates per country , it almost always feels like the go-to country to setup a corporation will always be Ireland. Setting up shop in Ireland is a fairly common "pay less on taxes" strategy because it is only 12% for corporations. One thing I am starting to notice in startups that start to gain traction and revenue is that they all start bringing in a CFO who has significant experience in b