9 States with No Income Tax - NHL CAP

[Seras]

Could just make the cap based off net player income.

It would take fine-tuning between the teams, and they could just use the average $ amount between all the teams to make it easier and less complicated

Owners in higher tax areas would get more money from profit sharing or pay less into it

 

[Seras]

The salary cap is a failure anyway. Tampa are making it very obvious this year, but a lot of other teams like Toronto are trying very hard too. Others have taken bad contracts to make it to the floor in the past too like Arizona (constantly) and Ottawa. Or just tank in general which the floor is suppose to prevent (Oilers, Toronto, Buffalo, Ottawa, New Jersey, New York, Tampa etc. etc. etc.).

There are now known mechanismes to circumvent the cap, teams are using it very openly and the league isn't doing anything (not sure they can anyway)

Everyone should do the best they can within the rules and if the NHL doesn't like it they can (and should) change the rules accordingly

 

[Legionnaire11]

The salary cap is a failure anyway. Tampa are making it very obvious this year, but a lot of other teams like Toronto are trying very hard too. Others have taken bad contracts to make it to the floor in the past too like Arizona (constantly) and Ottawa. Or just tank in general which the floor is suppose to prevent (Oilers, Toronto, Buffalo, Ottawa, New Jersey, New York, Tampa etc. etc. etc.).

There are now known mechanismes to circumvent the cap, teams are using it very openly and the league isn't doing anything (not sure they can anyway)

The players are making 50% and the owners are making 50%, the salary cap is working exactly as intended.

 

[End of Line]

https://www.taxpayer.com/media/CTF-HomeIceDisadvantage.pdf

 

[ziggyjoe212]

High tax areas such as LA, SJ, and NY will almost always be a preferred destination for UFAs and players than Raleigh or Dallas.
Not to mention that high tax cities LA, Chicago, and Pittsburgh have won 8 of the past 12 Stanley Cups.

There are 5 major sports leagues in this country and not a single one has shown that the income tax rate is a significant advantage.

 

[Djp]

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?

Dallas doesn’t either



players get taxed when they travel and play in other states and provinces.

Thrn is their residency which also is a factor

people also seem to forget

income+sales+ property taxes are around rage same amount across the country for avg income earners

 

[Reaper45]

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.

The Kings do not and have never attracted free agents.

 

[UConn126]

I work for an international company, and we don't factor in state income tax to salaries. I live in New York, one of the higher income tax states, because I love it here so much that it's worth the taxes to me. My counter parts that live in other states, like New Hampshire or Florida, effectively take home more than me, but in my view have to live in lamer places (key word: in my view. I'm sure others view Florida or NH as greater than NY and that's fine). If regular companies don't adjust for state income tax, why would the NHL?

 

[Pyrophorus]

I work for an international company, and we don't factor in state income tax to salaries. I live in New York, one of the higher income tax states, because I love it here so much that it's worth the taxes to me. My counter parts that live in other states, like New Hampshire or Florida, effectively take home more than me, but in my view have to live in lamer places (key word: in my view. I'm sure others view Florida or NH as greater than NY and that's fine). If regular companies don't adjust for state income tax, why would the NHL?

The NHL works in partnership with 32 other organisations.
IF the NHL really wanted parity, the cap should be adjusted, for jurisdictional taxes.
My cap is Alberta teams cap.

What your company does, doesn't mean the NHL has to do the same way.
Unless its the law.

 

[Mikeaveli]

The NHL works in partnership with 32 other organisations.
IF the NHL really wanted parity, the cap should be adjusted, for jurisdictional taxes.
My cap is Alberta teams cap.

What your company does, doesn't mean the NHL has to do the same way.
Unless its the law.

The point of the cap is to limit the amount of money owners are spending on player salaries, not parity. The NHL doesn't care about how much players are taking home after taxes.

 

[kerrabria]

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?

And then how do account for the SALT deduction?

 

[NorthCoast]

The NHL works in partnership with 32 other organisations.
IF the NHL really wanted parity, the cap should be adjusted, for jurisdictional taxes.
My cap is Alberta teams cap.

What your company does, doesn't mean the NHL has to do the same way.
Unless its the law.

Adjusting for tax is ridiculously complicated because players often have multiple homes in different states, different payment structures (front-loaded/back-loaded) bonusing structures, mid-season trades...not to mention constant changes to tax figures by states/provinces every year. Sure it's an advantage, but it's not as much of an advantage at the end of the day as you would think. Everyone of the players have excellent accountants. They all find ways to reduce their taxes.

If the league really wanted to fix parity it needs to get to a place like the NFL where every team should be able to spend to the cap every year due to increase central revenues/revenue sharing. That plus eliminating or capping loopholes like LTIR, bonusing, etc. would have real impact. If every team can spend relatively the same amount per year, a small tax or big market advantage should be negligible and able to be overcome by better team building.

 

[hoglund]

Please explain what's happened since the last time we discussed this ad nauseum.

Florida is one of those states and Tampa is about to win back to back Stanley cups and they're in one of the states with this advantage.

 

[Voight]

Just a recent example, but Canadians pay way higher taxes in general so this one might be skewed.

 

[Quack Shot]

Just a recent example, but Canadians pay way higher taxes in general so this one might be skewed.

Is this accounting for the jock tax? Players pay taxes for each state they play in throughout the year.

 

[tucker3434]

Not to be a dick about it but nobody (important) cares. Despite some of these teams making tons in profits, their owners aren’t actually in any rush to pay their players more. They like money. They would prefer to keep it in their pocket. The idea that they’re going to jump through all these hoops for the privilege of a higher payroll is nutty.

 

[HabsQC]

Why not just count salaries AFTER taxes ? Is it too simple ?

 

[DownIsTheNewUp]

Just a recent example, but Canadians pay way higher taxes in general so this one might be skewed.

Not all of Canada. There’s an article posted on this page saying Calgary and Edmonton have the lowest taxes in the league.

 

[Wester]

The problem is that you think the salary cap is about how much money the players make, meanwhile its about how much the teams pay.

 

[JJ68]

all these advantages and yet Montreal and Toronto still have to financially support these franchises.

 

[8999]

There's no tax rate or salary cap policy that can fix the issue of Spezza on a league minimum contract outscoring Matthews and Marner in the playoffs.

 

[48MPHSlapShot]

Suck it up, buttercups.

 

[Apex Predator]

Is this as big of a deal in other sports? I’ve never heard this in the MLB or NBA. I’ve sometimes heard it in the NFL when it comes to the Florida teams but not as big of a deal.

 

[Throw More Waffles]

Just a recent example, but Canadians pay way higher taxes in general so this one might be skewed.

Point also has much less front-loading, much less in signing bonuses, and makes much less in endorsements. Why isn't that taken into consideration?

These are all just excuses to defend Dubas's overpayments.

 

[Throw More Waffles]

Why not just count salaries AFTER taxes ? Is it too simple ?

Yeah, too simple.

Big market teams in high tax states/provinces would have no problem with it.

But small market teams in high tax states/provines would be at a significant disadvantage when it comes to real money (not cap space).

Winnipeg (for example) would have to pay a lot more REAL money than Florida teams to get to the cap ceiling.