9 States with No Income Tax - NHL CAP

[WTFMAN99]

Maybe just count a player's net salary against the salary cap based on take home pay in the State/Province the team is located?

 

[kingpest19]

And the Rangers and Kings have an advantage over the rest of the teams in the league because they attract the most free agents. Let’s do something about that too.

Huh? Since when do the Kings attract the most free agents? All they do is sign the occasional depth player or someone who is past their prime.

 

[triggrman]

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — have no income taxes "state".

Kraken, Knights, Panthers, and the Lightning.

Each of these teams have a clear advantage over the rest of the league. Each of these teams work within CAP framework plus added room when one factor's tax break to negotiate contracts.

Is this something the NHL will consider next collective agreement?

False, in the US there is a Federal income tax, eveyone pays it regardless of what state you live in. Some states, in fact many have high sales taxes, entertainment taxes and business taxes, instead of an additional income tax, but every person collecting a paycheck in the US pays income tax.

 

[txpd]

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — have no income taxes "state".

Kraken, Knights, Panthers, and the Lightning.

Each of these teams have a clear advantage over the rest of the league. Each of these teams work within CAP framework plus added room when one factor's tax break to negotiate contracts.

Is this something the NHL will consider next collective agreement?

Keep in mind that the advantage isnt what you think. Players pay taxes applicable where they are playing the game. So Tampa player pays state income taxes for almost all of their road games. Players playing in Tampa dont pay state tax for that game.

Next, the cost of living in Raleigh NC or Nashville TN is far lower than LA, Boston, NY or Toronto. Should cost of living be factored in? Also there is a lot of off ice money available for hockey players to make in Tampa while there is next to none for the Panthers. Toronto and Boston provide huge off ice income opportunities. Should that be factored? Tampa Bay is warm weather and beaches. Edmonton and Pittsburgh dont. How about that?

The state tax thing is one thing among many.

 

[tarheelhockey]

False, in the US there is a Federal income tax, eveyone pays it regardless of what state you live in. Some states, in fact many have high sales taxes, entertainment taxes and business taxes, instead of an additional income tax, but every person collecting a paycheck in the US pays income tax.

Perhaps you have not yet met the NHL's new accountant, Giuseppi "The Laundry Man" D'Antonini. Incidentally, he happens to manage an electronics shop that Gary Bettman owns on the side.

 

[txpd]

So what you’re telling me is the Canes need to re-incorporate as an LLC based out of South Dakota, with a “satellite office” in Raleigh?

Noted.

I dont think people that whine about the state income tax thing have a clue how all the different factors combine for a player to make a decision. Raleigh is a prime example. A dollar goes farther in Raleigh than in most NHL cities. The weather is nice and the community is one of the nicest in the league. There isn't big off ice revenue available but its great if you have a family and kids as opposed to other cities. Its true that some players would ever be satisfied in a place like Raleigh or Nashville, but there are others that love it and would never want to leave.

 

[Empoleon8771]

The Venn Diagram of "people who complain about taxes with respect to the salary cap" and "people who don't understand how taxes on pro athletes work" is a circle.

 

[txpd]

Maybe just count a player's net salary against the salary cap based on take home pay in the State/Province the team is located?

If a home in Anaheim or LA costs 3 times what a home in Raleigh costs, then what? If you can make another million in Boston with local endorsements, appearances and media but cant in St Louis, then what? If your wife is afraid of being alone for extended periods of time in the harsh winter weather in Edmonton or Buffalo, then what? There are a lot of factors that go into these things. Taxes are only one. One team has a brand new team facility with new practice and workout facilities and they play in a nice building with nice locker rooms while other teams have old and not nearly as nice facilities and game amenities?

 

[WTFMAN99]

If a home in Anaheim or LA costs 3 times what a home in Raleigh costs, then what? If you can make another million in Boston with local endorsements, appearances and media but cant in St Louis, then what? If your wife is afraid of being alone for extended periods of time in the harsh winter weather in Edmonton or Buffalo, then what? There are a lot of factors that go into these things. Taxes are only one. One team has a brand new team facility with new practice and workout facilities and they play in a nice building with nice locker rooms while other teams have old and not nearly as nice facilities and game amenities?

I'm just trying to think of a way to work around the different taxes, there are of course lots of variables such as cost of living etc.

USD goes further in Canada.

Ultimately I think the biggest issue here is that the NHL is pretty much the only hard cap league whereas the others give you the luxury tax option.

 

[x Tame Impala]

I'm just trying to think of a way to work around the different taxes, there are of course lots of variables such as cost of living etc.

USD goes further in Canada.

Ultimately I think the biggest issue here is that the NHL is pretty much the only hard cap league whereas the others give you the luxury tax option.

Why does the tax issue need to be worked around at all? You’re proposing a non-solution to a non-problem

 

[WTFMAN99]

Why does the tax issue need to be worked around at all? You’re proposing a non-solution to a non-problem

Trying to go along with the theme of the thread

Nothing wrong with brainstorming some ideas to see if there is *some* sort of way to make it a level playing field.

Pretend you have a gun pointed at your head and you need to think of a way to make the playing field a bit more level in a salary cap world.

 

[Rschmitz]

Every region has it's draws, if you don't like it vote your politicians out of office

 

[x Tame Impala]

Trying to go along with the theme of the thread

Nothing wrong with brainstorming some ideas to see if there is *some* sort of way to make it a level playing field.

Pretend you have a gun pointed at your head and you need to think of a way to make the playing field a bit more level in a salary cap world.

Its a faulty thread premise to begin with

 

[sepster]

Any sort of payroll issues created by individual state tax situations is cursory and doesn't really address the real issue people have, which is it allows certain teams to have an unfair advantage over others. Oh, the humanity.

What the NHL should do to address the ever-present Parity Disparity is:

1 - Eliminate all GMs. The NHL BOGs would then rank all players in the league by talent and evenly distribute them among the teams. BOOM! No more ultra talented GMs assembling better rosters than other teams, and no salary issues. Parity, baby!

2 - Eliminate all coaches. The NHL would determine offensive and defensive schemes that all teams must adopt and play by. BOOM! No more talented coaches out-coaching their less talented peers. Parity, baby!

No competitive advantages what-so-ever! I can't wait for this utopia. All parity and no whining!

In fact, that could be the NHL's new slogan.

"All parity, no whining! Get your tickets for your favorite Equitable Hockey League today!"

 

[txpd]

I'm just trying to think of a way to work around the different taxes, there are of course lots of variables such as cost of living etc.

USD goes further in Canada.

Ultimately I think the biggest issue here is that the NHL is pretty much the only hard cap league whereas the others give you the luxury tax option.

There is no reason to work around the taxes. I just pointed out all the other things you would have to work around. If I can pay a player a million dollars less because he I can arrange for $1.5m in local endorsement money, do you want to work around that? In Raleigh NC a $500k home is $2.3m in California. Paying taxes is nothing compared to that. There are a lot of NHL players that would pay the extra tax in order to play in NYC, Boston or Toronto or be able to live in Vancouver, Tampa Bay or Pheonix.

You equalize the taxes which in immediately unbalances the league situation because teams that could get players, now cant.

 

[TheDawnOfANewTage]

Man f*** Alaska and their unfair advantage in the NHL.

 

[WarriorofTime]

Maybe just count a player's net salary against the salary cap based on take home pay in the State/Province the team is located?

The most important person in each organization would no longer be a Forward, a Defenseman, a Goaltender, or even a Coach or a GM... but a tax accountant.

 

[txpd]

Ultimately I think the biggest issue here is that the NHL is pretty much the only hard cap league whereas the others give you the luxury tax option.

Ultimately you dont approve of big market teams not being able to use their size and revenue advantage as a weapon against the rest of the league

 

[notsocommonsense]

They have no state tax they have fedral tax.

Haha, thk you . . . I was reading that thinking wtf, how can they not have any income tax?!??

 

[Buff15Sabres]

50% of players salary

But if majority is paid in signing bonus it's a huge win for the player with no State income tax

It doesn't matter if a player is paid as a signing bonus or periodically throughout the year. They'll still need to pay jock taxes based on where they played games.

 

[WTFMAN99]

Ultimately you dont approve of big market teams not being able to use their size and revenue advantage as a weapon against the rest of the league

But in the NBA, MLB, NFL etc you have a luxury tax...they don't take taxes into account in those leagues which is what everyone is saying to disregard in this thread while ignoring the luxury tax that exists in the other 3 major sports leagues.

 

[dekelikekocur]

It just hit me that a big part of the disagreement on the salary cap/tax topic might be the fact that Americans are so used to thinking about this dynamic that it doesn’t faze us as much.

As a North Carolinian I’m surrounded by people who moved here from NJ, NY, MI, OH, PA, etc to avoid taxes. At the same time, I’m used to having the ~30th or 40th best public services in the nation, and everything that means for quality of life.

Our region has been in the position of luring a lot of people to a slightly lower quality of public life in exchange for a little more money in their own pocket, a little bigger house, newer car, etc. And we’ve also been in the position of saying “Oh, you’re relocating to Alabama to save 2% on your tax bill? LOL, good luck buddy.”

This tradeoff is just part of life in 21st century America, and nearly everyone makes a value judgment at some point as to what they want to prioritize. So idea that it happens in the NHL is neither shocking nor problematic. It’s just another version of the big city/small town or beaches/mountains decisions we all make.

People from Michigan aren't moving to North Carolina for the tax rate considering ours is already a full percent lower in MI. They're moving there to get away from the snow and cold hehe.

 

[txpd]

The most important person in each organization would no longer be a Forward, a Defenseman, a Goaltender, or even a Coach or a GM... but a tax accountant.

More like a financial lawyer. That Capitals salary cap manager/contract negotiator is a lawyer.

 

[Little Psycho]

And the Rangers and Kings have an advantage over the rest of the teams in the league because they attract the most free agents. Let’s do something about that too.

Lol Kings are usually involved in the rumors but they don't end up with the free agent. Go ahead and name the free agents that the kings have gotten over the years

 

[WarriorofTime]

Lol Kings are usually involved in the rumors but they don't end up with the free agent. Go ahead and name the free agents that the kings have gotten over the years

Not a free agent technically but Jeff Carter pouted his way out of Columbus so he could go party in Los Angeles.