I’m not getting your “tax free” argument here, nor “money now vs money” later.
- Any investment earnings are going to be taxed going forward. Whether those investments come from your Option A or B.
- The Player is being paid “Now” when the money goes into the RCA, fully available to invest and compound.
If you have the time to research, I would love to see a example of a single Player Agent or GM who says RCA’s can’t significantly reduce a Players effective tax rate. I honestly doubt any of them ever said “players agents GMs accountants say tax free is better.”
1.) RCA aren’t at all what you think they are in practice. It is just a souped up version of an RRSP. The Canadian government says “give us your money now to invest. We give you tiny returns for 30’years.... but then when you retire in 30’years. We tax you less because you don’t have a job”. So instead of taxing you like a lawyer. We tax you like a cashier. So you pay less
But if you take it out in Canada. That counts as your income. So if you took out a million dollars. You still would still get taxed like Normal. Basically you have to move. Or trickle your money like 150k per year. Or you get taxed the same.
2.) I have this program myself because of a pension payout. I have made little to no money. 2 years ago I lost money. The idea that a millionaire would put their money in the same government program that blue collar workers do is nuts. It’s like driving a civic or eating at appelbees. I would believe that they have. They have much better investment options than the general Canadian government provides
They don’t shop where I shop. Drive what I drive or eat what I eat. But we are both investing in the same level with the same guy? Probably not.
3.) it doesn’t matter what I think or you think. It matters what they think. NHL players agents GMs and coaches have all came out and said that tax rates effect salaries and decisions. We have tons of evidence for that.
we have NO evidence that players are signing in Canada for RCA tax advantages. I wonder why that is?