Salary Cap: Issue with State Tax

[GardinerTheForward]

It is widely known states like Texas and Florida offer an advantage due to more dollars in the pocket.

Ex: Gourde recently signed for an AAV of 5.166 Million (a 60 point rookie season player). This would never happen here in Toronto, cue #29.

What as fans can we do to urge the NHL to prorate the salary cap to be the same regardless of tax jurisdiction?

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[egd27]

It is widely known states like Texas and Florida offer an advantage due to more dollars in the pocket.

Ex: Gourde recently signed for an AAV of 5.166 Million (a 60 point rookie season player). This would never happen here in Toronto, cue #29.

What as fans can we do to urge the NHL to prorate the salary cap to be the same regardless of tax jurisdiction?

Write to the NHL offices expressing your views.

 

[Al14]

It is widely known states like Texas and Florida offer an advantage due to more dollars in the pocket.

Ex: Gourde recently signed for an AAV of 5.166 Million (a 60 point rookie season player). This would never happen here in Toronto, cue #29.

What as fans can we do to urge the NHL to prorate the salary cap to be the same regardless of tax jurisdiction?

It is long over due for the NHL to level the playing field. It's ludicrous that our Leafs have to pay into revenue sharing and compete with teams located in tax free states to sign players.

 

[hotpaws]

What fans can do is realize these guys dont't go the mall to get there taxes done so it's not as simple as looking at the different tax rates in each markets.

 

[glue]

Write to the NHL offices expressing your views.

Agreed but I would take it a step further and say he should write to MLSE and leafs to see if they plan to raise this during next CBA?

 

[member 147413]

Too bad you have to live in a corrupt country for that to apply.

 

[Nineteen67]

Taxes are paid in the cities, counties and States where they earn the money, so it’s not as cut and dry as you think.

I live in TN and I earn income primarily in Tennessee , Arkansas, Maryland, DC/ Virginia and Florida and have to file state income tax in each of those states (not DC).

 

[Nineteen67]

Wouldn’t it be wiser to lobby for lower the taxes in Ontario? Do they have provincial taxes in Alberta?

 

[Marshy]

But how does that grow the game in the US??

 

[Al14]

Wouldn’t it be wiser to lobby for lower the taxes in Ontario? Do they have provincial taxes in Alberta?

Good luck with that venture! LOL

 

[Dreakmur]

Taxes are paid in the cities, counties and States where they earn the money, so it’s not as cut and dry as you think.

I live in TN and I earn income primarily in Tennessee , Arkansas, Maryland, DC/ Virginia and Florida and have to file state income tax in each of those states (not DC).

With revenue sharing, I think a case could be made that all players are paid at least a portion of their salaries from a centralized location.

I think you’d also need to clarify exactly what the players are paid for. Do they get paid only for the number of games they play? If so, then half of their money is earned on the road, and they pay the taxes of their opponents’ state. Do they get paid to practice? Media appearances? Travel?

 

[Kazparov]

How exactly do you mitigate this? Who is going to pay the taxes in a state/province to make the salaries equivalent.

The CRA/IRS will laugh at the suggestion that millionaire athletes get a massive tax credit to make a hockey league more equal.

Owners sure arent going to want to pay extra in Ontario. Sure maybe a super rich team like Toronto would, but small market Canadian cities paying an extra premium on top of salaries in USD.

Won't work.

 

[Kazparov]

With revenue sharing, I think a case could be made that all players are paid at least a portion of their salaries from a centralized location.

I think you’d also need to clarify exactly what the players are paid for. Do they get paid only for the number of games they play? If so, then half of their money is earned on the road, and they pay the taxes of their opponents’ state. Do they get paid to practice? Media appearances? Travel?

This is incorrect from a tax point of view. The revenue for a player is generated via the team they play for, which is based out of a certain jurisdiction. So that tax is payable there.

 

[GoonieFace]

You don’t think these guys have tax write offs? In the end it’s probably a wash

 

[Nineteen67]

With revenue sharing, I think a case could be made that all players are paid at least a portion of their salaries from a centralized location.

I think you’d also need to clarify exactly what the players are paid for. Do they get paid only for the number of games they play? If so, then half of their money is earned on the road, and they pay the taxes of their opponents’ state. Do they get paid to practice? Media appearances? Travel?

They are paid for 186 days of work.

 

[Kazparov]

You don’t think these guys have tax write offs? In the end it’s probably a wash

Yes and let's not forget, these guys are all very well compensated and if there are smart with their money should be making 8%-10% compounded on their after tax earnings which again, unless they are foolish, they should be set up for multiple lifetimes.

 

[ACC1224]

It is widely known states like Texas and Florida offer an advantage due to more dollars in the pocket.

Ex: Gourde recently signed for an AAV of 5.166 Million (a 60 point rookie season player). This would never happen here in Toronto, cue #29.

What as fans can we do to urge the NHL to prorate the salary cap to be the same regardless of tax jurisdiction?

Nothing.

 

[HamiltonNHL]

Write to the NHL offices expressing your views.

Bettman doesn't care as he likes the Cup to be in American hands. American teams in the stanley cup finals = better TV ratings = better TV deals = more money for the owners.

So why would NHL GMs with an advantage, voluntarily give that up ? To be fair ? No.


The only hope is that Rob Ford lowers the Taxation for professional hockey players in Ontario as a populist move.

 

[56 Years No Cup]

Bettman doesn't care as he likes the Cup to be in American hands. American teams in the stanley cup finals = better TV ratings = better TV deals = more money for the owners.

So why would NHL GMs with an advantage, voluntarily give that up ? To be fair ? No.


The only hope is that Rob Ford lowers the Taxation for professional hockey players in Ontario as a populist move.

Rob Ford?

 

[HamiltonNHL]

Rob Ford?

Doug.

 

[Spirit of 67]

I've yet to see any real evidence that it actually matters.

 

[HamiltonNHL]

I've yet to see any real evidence that it actually matters.

Myself as well.

I'd rather play down south for the weather. i'm sure players would as well.

 

[VanW27]

I've yet to see any real evidence that it actually matters.

Agreed, I also think players care a lot more about where their salary ranks them among their peers then how much "real" money is deposited in their bank accounts.

 

[egd27]

Bettman doesn't care as he likes the Cup to be in American hands. American teams in the stanley cup finals = better TV ratings = better TV deals = more money for the owners.

So why would NHL GMs with an advantage, voluntarily give that up ? To be fair ? No.


The only hope is that Rob Ford lowers the Taxation for professional hockey players in Ontario as a populist move.

Don’t disagree.
However, the question was what can you do as a fan.

 

[HamiltonNHL]

Don’t disagree.
However, the question was what can you do as a fan.

Market the issue to Doug Ford as an unfair advantage to American hockey teams and that Ontarians want fair hockey while enjoying buck a beers.