Salary Cap: Parity not really?

[Leafidelity]

I'll never understand why state/province tax wasn't included in the cap.

 

[Wafflewhipper]

I'll never understand why state/province tax wasn't included in the cap.

There is a tax treaty between the states and Canada where players only pay one tax.

 

[Wafflewhipper]

Nationality doesn't mean anything for taxes, nor the nationality of the company you're working for, at least not in Canada and probably the US. If you play hockey for a Canadian NHL franchise, but your main residential home and family are elsewhere, it's likely you don't pay any Canadian tax at all so long as you spend less than 183 days (half a year) outside of Canada, which NHL players can likely make happen.

I don't know all the details myself, but I can certainly tell when a bunch of non-accountants are making a tax fuss about something they don't know anything about.

Nationality certainly does mean something. Thats the way it works in the states.

 

[BlueBaron]

This is because most people with very large incomes don't do it with salary. If you run your own business, there are many creative things you can do with your tax liability. If you're receiving your phat income in salary, no, there isn't actually a lot they can do.

Not entirely accurate. There are all kinds of investment vehicles that allow tax avoidance. RRSP's are the most basic example but there are also tax shelters, charitable donations etc.

If I own a company and pay myself it is no different than an NHL player getting a salary. Also players have a large number of things they can declare business expenses such as a second residence being required for your work etc.

People would do well to consider the fact that not everyone is entirely motivated by money. I could earn more money if I moved back to Toronto but I prefer to live in Peterborough to be closer to my parent and for the slower pace, surely there are NHLers who think the same way.

Money can be even less important when you are earning sums greatly beyond your needs. The difference between a 7 year deal that pays you 70 mil and one that pays you 60 is almost non existent in terms of how it would impact the players quality of life. The lower earners (1 mil and under) are more profoundly impacted but they are also not in a position to be as fussy about where they play.

 

[Wafflewhipper]

I don't click blogs but I'm guessing this has to do with taxes.
Is there one example of a Player choosing one Team over another because of taxes?

Search " jock tax" and you will be surprised how many cases of decisions of where to play is basrd on taxes. Players would be fools to not incorporate salary protection relevancy into decisions.

 

[Budsfan]

Tax tricks: How an $8.5M Lightning contract keeping Steven Stamkos in Tampa is better than $10.5M to leave

http://www.tampabay.com/sports/hockey/lightning/inside-the-money-matters-for-steven-stamkos/2262766

In Toronto, Stamkos' hometown, there's a proposed 53.53 percent federal/provincial tax if he's a Canadian resident. So even if the Maple Leafs offer $10 million annually, Stamkos would net $7 million less total over the length of the deal compared one at $8.5 million annually in Tampa Bay, partly thanks to an eighth year. Stamkos would even make just $1.4 million less total than Kopitar over his eight-year deal with the Kings, assuming Kopitar is a California resident.

There's still no guarantee Stamkos signs with Tampa Bay, and keep in mind that reported $8.5 million annual average hasn't been confirmed by either the Lightning or Stamkos' agents at Newport Sports, who continue their media blackout. It could be just an initial offer in prolonged negotiations.

But while there are many factors that go into this decision, there's no question the Lightning will be selling the fact that Florida has no state income tax as part of its pitch to keep the All-Star center.

Tampa Bay has done so in the past with free agents like Ryan Callahan, and knowing the salary cap crunch it'll have in coming years, every dollar will count.

"In my mind it's a factor you always look at," said Callahan's agent, Steven Bartlett. "I know some of the big stars get hung up on the number because it's almost an egotistical thing — and I'm not saying it's this way with Stamkos. I'm just saying a guy feels like, 'He gets 10 (million), I need 10 (million). I need nine just to validate.' But if you're smart you realize, 'I have to run the calculation.' It isn't always just the number that's thrown out there that's the real number.