By Chris Williams: With the United States taxing at a high rate of 39.6 percent for purses more than $1 million, we could see other foreign fighters following Manny Pacquiao to fight outside of the U.S in order to keep as much as money as possible from the cash they get from American pay per view sales.

With the foreign fighters, they can escape the high taxes from the U.S, at least for now, simply by fighting outside of the U.S while enjoying the American money. Pacquiao will likely be the first to dodge the huge tax by fighting in one of the Asian countries for his next fight.

Pacquiao is looking at fighting Juan Manuel Marquez for a fifth fight in September. The venue for that fight could be Macau, which has a tax rate of 12% compared to the 39.6% from the U.S. That means Pacquiao will save 27.6% just by fighting outside of the U.S.

Since the HBO film crew will no doubt accommodate him due to the huge money they can get from this fight, they’ll gladly flaw across the world to Macau to televise the fight for the American fans. That’s where Pacquiao will get most of his money through the U.S PPV.

It’s going to be interesting to see if other fighters attempt to do the same thing for their fights, whether on PPV or regular HBO or Showtime. If they’re going to get $1 million or more for the fight, the only way they can maneuver around the big tax is to fight outside of the U.S. If HBO or Showtime are willing to accommodate them each time, then we could see the top foreign fighters following Pacquiao to fight outside of the U.S.

Of course, HBO and Showtime could be hurting U.S cities like Las Vegas, New York and Atlantic City by agreeing with the promoters of these events to televise these fights. If that doesn’t bother them, then we could see a lot of this type of stuff going in the future. It’ll obviously only work for foreign fighters that have first established themselves in the U.S by fighting over there before then moving outside of the boundaries to dodge the taxes.

With Pacquiao, he may not have much time do enjoy the money he gets from doing this because it appears his career is heading to a halt. He just got blasted out last December by Marquez, and chances are he’ll get knocked out again when he faces him in December.

Can Pacquiao’s promoter Bob Arum keep selling Pacquiao’s fights to the American public on PPV with him getting beaten every time he fights, I don’t know, but I suspect Arum will keep asking the American boxing fans to pay to see Pacquiao fight for as long as they’re willing to pay. Pacquiao has now lost his last two fights.

Will Arum still be able to convince American boxing fans to pay to see Pacquiao fight if his losing streak stretches further? I’m not eager to pay to see him fighting now that he’s losing. I think Pacquiao should be on regular HBO. He can outside of the U.S as much as he wants, but I don’t think it’s worth paying to see him anymore.