An idea to remove the cap advantage for no tax states

[Golden_Jet]

This is not an argument that can be debated outside of opinion.

Yes it can.
How much do you think Matthews pays in taxes.

 

[tucker3434]

Does it?

I dunno barring a few grand here and there it seems to track for income taxes paid in Ontario.

Ontario Tax Calculator 2024: Estimate Your Taxes - Forbes Advisor Canada

Use our income tax calculator to find out what your take home pay will be in Ontario for the tax year. Enter your details to estimate your salary after tax.

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$11,000,000 income tax calculator 2024 - Ontario - salary after tax

If you make $11,000,000 in Ontario, what will your income after tax be? The Talent.com Online Salary and Tax Calculator can help you understand your net pay.

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2024 Income Tax Calculator Ontario

Estimate your provincial taxes with our free Ontario income tax calculator. See your tax bracket, marginal and average tax rates, payroll tax deductions, tax refunds, and taxes owed.

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2024 Personal tax calculator | EY Canada

Tax Calculators, 2024 Personal Tax Calculator

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If you think Tavares uses the Forbes tax calculator for his tax planning, I've got some news for you...

These things are good for showing you the maximum possible amount you would owe. They don't know your deductions or credits, which we all have. But millionaires typically have a lot of them.

 

[cowboy82nd]

We know that, it was sarcasm about the cap but something needs to change so those teams dont have an advantage. Just like something had to change 20 years ago so the rich teams didnt have an advantage.

Something changed so the NHL would still be a league.

 

[Kahvi]

We know that, it was sarcasm about the cap but something needs to change so those teams dont have an advantage. Just like something had to change 20 years ago so the rich teams didnt have an advantage.

So you don’t know what the salary cap is for.

 

[Beukeboom Fan]

Oh, Johnny T? The guy who took that amazing home discount right? The guy who literally only had 1 place he wanted to play in his career and made it essentially known without question or hesitation (outside of his statements to the NYI fans) that he would be going to Toronto?

Who signed for $11 million a year.

Glad you found the what, one of maybe 2 whole dozen stories like that available for reference in the league over the last 20 ish years.

But for kicks, Tavares makes $11 million a year. His take home AFTER federal, provincial taxes and CCP/EI comes to $5,144,348. Or in essence he is losing $5,855,652 in total dollars every year.

Obviously losing over half of one's entire yearly salary would absolutely make no difference to a young player. Player nearing retirement, or player looking for a longer term deal knowing they only have one chance to maximize their earning potential.

Obviously the idea of playing somewhere that would allow you to make home say 75% or more of your entire yearly earnings has little affect on a player or player agent's decision on where they will sign as a UFA

Obviously.

Let me cry John Tavares a river!

Which NHL player pays 25% in taxes?

Players sign where they do for a variety of reasons. Distilling it down to only taxes is a gross oversimplification.

Would love to see people's actionable suggestions considering the potential massive differences on the same team (TOR as an example). Additionally, any adjustment necessary would only be for UFA years.

 

[JPT]

I've got it. All players must live in Canada. They will maintain residences, and all off days will have to spent there as well. And none of the Vancouver bullshit. Winnipeg. This solves the glaring tax advantage AND removes quality of life advantages.

 

[Djp]

How about no? Yea, tax me to holy hell but please don’t tax my favourite athletes. Sounds ludicrous. I am sorry.

It's also going to go to the Corp recs as well if such a law was passed.

 

[The Crypto Guy]

So you don’t know what the salary cap is for.

Oh you can believe what you want. If it was to truly help the financial stuff then they would have made a luxury tax. Anyone with common sense knows that.

 

[Sypher04]

Many times I keep getting told that folks want to play in Canada because hockey up there is almost a way of life and therefore they're treated like superstar celebrities or something. I think this constitutes an unfair advantage and therefore those of us not in Canada deserve extra cap space to offset it.

One is monetary and quantifiable. The other has nothing at all to do with money, so why would it have anything to do with the cap.

Nonsense equivalency.

How about we just re-locate all of the teams to no tax states.

Problem solved. You're welcome.

Excellent suggestion, but we will do the reverse as it would be much simpler.

 

[Catscountry40]

A lot of talk lately about certain teams without income tax having an unfair advantage with the salary cap as they're able to sign players at a discount. Not much talk about how to fix it but I have one fairly simple idea (in theory). Fans of these teams won't like it but how about no tax teams don't get the cap increase that is going to be taking place over the next few seasons? It's expected to go past $100 million in 3 seasons or so, well how about no tax teams stay at $88 million or at least have a reduced cap increase compared to every other team.

Eventually the league settles on a certain percentage, whether it's 15-25% less than other teams - at least this advantage will be taken away from them. It might be complicated to have two different salary caps but perhaps its worth a try. Thoughts?

An extra 12 million? They is two legit players. GTFO Love how you guys assume every player takes a discount. People make it seem like the Panthers won because of tax. Not because they found Forsling on waivers, or Verhagee was 4th liner for TB and became a star.
The Panthers have not been able to keep multiple free agents that few years.

 

[Catscountry40]

I like the solution of moving more teams south.

There not a single good reason for there to be teams in Winnipeg, Calgary, and Edmonton.
People only care for Edmonton because McDavid.
Other than that, not a soul wants to voluntary move or visit to those places. It was a nightmare just for media to get to Edmonton.They do nothing for the league compared to what a team in Houston would do.

Those tiny Canadian markets are capped.

Want the cap to go up? Move teams to major markets .

 

[FiveTacos]

One is monetary and quantifiable. The other has nothing at all to do with money, so why would it have anything to do with the cap.

Nonsense equivalency.

Cost of living, however, is quantifiable. Thus expensive places to live (like NY, CA, and yes FL) are disadvantaged and should have rules in place to compensate and level the playing field, since it's just a numbers game and we're trying to be "fair", yes?

 

[tucker3434]

Cost of living, however, is quantifiable. Thus expensive places to live (like NY, CA, and yes FL) are disadvantaged and should have rules in place to compensate and level the playing field, since it's just a numbers game and we're trying to be "fair", yes?

Funny how that never gets brought up, right?

 

[Sypher04]

Cost of living, however, is quantifiable. Thus expensive places to live (like NY, CA, and yes FL) are disadvantaged and should have rules in place to compensate and level the playing field, since it's just a numbers game and we're trying to be "fair",

Funny how that never gets brought up, right?

This is not the gotcha people brining it up think it is. Taxes distort NHL income, cost of living doesn’t.

 

[RunItBackAgain]

I like the solution of moving more teams south.

There not a single good reason for there to be teams in Winnipeg, Calgary, and Edmonton.
People only care for Edmonton because McDavid.
Other than that, not a soul wants to voluntary move or visit to those places. It was a nightmare just for media to get to Edmonton.They do nothing for the league compared to what a team in Houston would do.

Those tiny Canadian markets are capped.

Want the cap to go up? Move teams to major markets .

This is satire, right?

 

[tucker3434]

This is not the gotcha people brining it up think it is. Taxes distort NHL income, cost of living doesn’t.

It is to people who understand how money and taxes work.

 

[Viqsi]

I like the solution of moving more teams south.

There not a single good reason for there to be teams in Winnipeg, Calgary, and Edmonton.
People only care for Edmonton because McDavid.
Other than that, not a soul wants to voluntary move or visit to those places. It was a nightmare just for media to get to Edmonton.They do nothing for the league compared to what a team in Houston would do.

Those tiny Canadian markets are capped.

Want the cap to go up? Move teams to major markets .

As amusing as I find this, and I truly do... let he or she who would take a team away from fans first volunteer his or her own, without exception.

 

[dukeofjive]

Luxary tax, maybe add 1 contract per year per team does not count againts the cap. More gambling adds...

 

[Dr Quincy]

So that is your response? I'm goint off the top of my head. Besides, Kuch had 128 points in 18-19. Kane and Toews already signed 10.5 M deals 4 seasons earlier. Seemed at the time that he left money on the table. My bigger point was to do a comprehensive study on this. I said it "feels" that tax-free states get an advantage with under-market contract with star players. Maybe it isn't that big of an advantage.


I did say it "feels" like the tax-free state teams are getting an advantage and a study needs to done. I'd be surprised if it was proven to not be an advantage for those teams.

Ok we should penalize those teams. Also we should penalize front offices that make it a strategy to finish last, and fine them draft picks.

Retroactively.

Deal?

 

[Catscountry40]

This is satire, right?

No, those cities are wastes. They give no huge upside. Team in Houston over Edmonton has could be a ton more revenue over time. Gotta think big picture.

 

[JPT]

No, those cities are wastes. They give no huge upside. Team in Houston over Edmonton has could be a ton more revenue over time. Gotta think big picture.

Don't even have to change the name either

 

[Catscountry40]

If the NHL was tarting over tomorrow there is zero percent chance those cities have teams.

 

[FiveTacos]

This is not the gotcha people brining it up think it is. Taxes distort NHL income, cost of living doesn’t.

Ok I just did a search on real estate. For what I could get in Edmonton for 800k USD (good sized family home), in any CA market for the same price I'm looking at apartment sized.houses in ordinary neighborhoods. To get a comparable home, a player in SJ is going to have to pay at least 2.5m. And the property tax and insurance on such a house is not cheap.

Maybe if I'm a superstar it doesn't matter. But for midrange guys and lower, that's a big factor. Would you want your wife and kids crammed into 1100 sf house in a so so neighborhood, when they could be living comfortably in a mini mansion elsewhere? Tell me that's not a major disadvantage.

 

[TheFinalWord]

No, those cities are wastes. They give no huge upside. Team in Houston over Edmonton has could be a ton more revenue over time. Gotta think big picture.

How about we compare Edmonton and Florida's attendance and tv viewership over the past 10 years. Or 20 years. Or since Florida's inception. Your team has really only been relevant for 15min and you're now suggesting other teams move to help increase attendance/viewership. Brilliant. Your team has been a joke for most of it's existence and has finally had a small run of success, and you decide now's the time to chirp about where teams should be located. Last season you were finally top 10 in attendance (still behind Edmonton of course), but the year before Florida had the 7th worst attendance. Sounds like bandwagon fans. What happens if Florida stats to slip again? Maybe we can move them to Houston. We know the success the Florida Marlins has been. Even the Dolphins are low on the attendance charts. Just not a great sports market I suppose.

 

[Viqsi]

No, those cities are wastes. They give no huge upside. Team in Houston over Edmonton has could be a ton more revenue over time. Gotta think big picture.

Okay, the amusement is gone now.