Odd that its almost exclusively Toronto fans bringing this up eh?
Not a Leafs fan, bud.
Idea re taxes and salary cap
- Thread starter tinyzombies
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Not a Leafs fan, bud.
Golden_Jet
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- Sep 21, 2005
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What "exchange difference" are you talking about? Players are paid in USD which is actually worth 1.337CAD atm so... not sure what you're getting at with this
Odd that its almost exclusively Toronto fans bringing this up eh?
Owners of Canadian teams generate Canadian dollars not US, but pay out salaries in US.
There's not many players that are going to share their returns with the owners. I wouldn't share mine with my employer.
Golden_Jet
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MrHeiskanen
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- Nov 12, 2017
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While we are at it, let's give teams from Southern markets a greater cap increase because the high end players on these teams have less marketing opportunities and sponsorship opportunities compared to Canadian teams.
Gotta make it fair and all.. right?
Gotta make it fair and all.. right?
Write offs, medical bills, loans, interest, charities, retirement funds, investments, etc can all be pretty personal. Knowing what I make is different than knowing how I spend my money.
I bet COVID-19 slows that down. Take Matthews, he got his $16m signing bonus in July, he’ll only have to discount/defer whatever, his 700k salary.
Yup. Matthews has made 30.4 million in Bonuses last 2 July. And I have to hear he wants out due to "Taxes" LOL
But yes, even wealthy teams might have to cut that out. Arizona actually missed paying their relative small bonuses om July 1st
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Lol he’s not even paying Canadian taxes on the signing bonus since he lives in Arizona in the off-season
Yup. Matthews has made 304 million in Bonuses last 2 July. And I have to hear he wants out due to "Taxes" LOL
But yes, even wealthy teams might have to cut that out. Arizona actually missed paying their relative small bonuses om July 1st
High tax team would be advantaged as I assume tax write off would not be considered as they change on a year to year and personal basis.
Well, if the new Biden Administration follows through on the tax increases above $400,000,
Canadian teams will start to look pretty good tax wise
barring a vaccine led miracle, state income taxes could be the least of the NHLs worries
the costs coming out of this will be staggering
Canadian teams will start to look pretty good tax wise
barring a vaccine led miracle, state income taxes could be the least of the NHLs worries
the costs coming out of this will be staggering
Let's say taxation is 20% but you're able to get it to 0-5% using different means. That team would be advantaged versus a team that has a 5% taxation as the cap hit would be lower but players end up making the same at the end of the day.
Unless you want the cap hit to be calculated and changed after each fiscal year.
The "effective tax rate" is not that hard to estimate.
You could do that or you could just fix the "cap hit" at the time of the player's signing. I prefer the latter, but I'd honestly take both over the current system.
The effective tax rate is different for everyone depending on how good (or sleazy) their accountant is.
Sure, but there is a statistic called effective tax rate that gives you a close enough figure. Some slight variation person to person is not at issue here.
Really depends on the contract. Bonuses are paid-out in the offseason and are not taxed where you play. Matthews is making more than he would in Florida or Dallas.
DistantThunderRep
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- Mar 8, 2018
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That is actually the issue people are bringing up, the variation of players from one team to another.
Still not sure if I get the issue here.
Effective tax rate takes into account deductions, and the statistic "Effective tax rate" that economists and policy people use is an average of those individual effective tax rates for a given income.
At the time of signing what you can do is subtract the average effective tax from the pre-tax salary to get an estimated post-tax salary for that player and use that as your "cap" figure. So for example, say a guy that is signed for $900k would get an estimate post-tax salary of $675k, that will be his cap figure. Whatever his accountant does after that point, to deduct his home gym or change his primary residence, that's their business. The average deduction and average tax payment is what is factored in. Everyone in that bracket will have an accountant doing shenanigans for them, it's fine to use the average.
Boondock
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These arguments don't actually work for several reasons. First off endorsements are the responsibility of the individual. you could play in New York and not benefit from the endorsement opportunities or you could be in Nashville and get huge deals. This has more to do with the individuals business model. As for prestige, again this would be for the individual to decide if they find individual non-monetary value in history. Taxes are an actual dollar value pre-determined for all people in a specific region. TB can offer Stamkos $8.5 annually and his take home would be the same as if he was paid $10.2 in Vancouver. The difference between the income tax on $81.5 million in Toronto and Vegas is $12million dollars. This is a clear discrepancy that is clearly identifiable and has a tangible figure attached to it.
Whalers Fan
Go Habs!
While we are at it, let's also adjust for differences in real estate, gasoline, food, movie theater tickets, healthcare, restaurant meals, cotton candy, pet licenses, manicures, etc, etc, etc.
