I'm a lawyer. I have tax lawyers in my office who spend a lot of their time devising tax planning structures that mitigate the amount of tax very wealthy people pay. I have seen lots of these plans. People in this position pay very expensive professional advisors for a reason.
As an aside, do you know what the biggest benefit is for NHL, NBA and MLB players who play on Canadian teams? They are paid in USD to live in CDN dollar markets. It's interesting that I never see that mentioned.
OK I get that these tax lawyers mitigate the tax amounts, but still, I'm guessing they can't always eliminate tax completely, or can they?
Example (numbers pulled out of the air). A player with a 5 million salary in 2 different locations, one has a 20% tax rate, the other has a 40% tax rate. So without tax lawyer magic, in one location the net would be 3 million, in the other 4 million. After the lawyers are done, would the player take home 5 million regardless of which location he plays in? Or some amount less than 5 million but still, the same in both locations?
I imagine it's complicated and that different "structures" are legal in different states/countries but still, I have a hard time understanding how a lower tax rate would of no benefit whatsoever. Might it be fair to say that playing in a state like FLA with a lower state tax rate is beneficial, but perhaps not as beneficial as the the raw tax numbers might suggest?
Your point about getting paid in US dollars but living in Canada seems completely valid to me, thanks for pointing that out!
rant
And that's just another reason to be pissed at Dubas for the Marner contract (just taking the most egregious example). It's not enough that we front load the crap out of contracts on a regular basis, it's not enough that a guy like Marner has more endorsement opportunities that he'd have anywhere else, there's also the fact that he's paid in US dollars and spending Canadian dollars, all these things should be more than enough to compensate for a lower tax rate, even if that is still somewhat of a factor regardless of tax lawyers.
/rant