Should the NHL salary cap adjust for local income tax?

[CanadianPensFan1]

The reason this topic exists is because people think it’s unfair lower taxed markets can offer higher take home pay. It’s releveant that most markets with the highest tax are also the same places that will have the best endorsement opportunities.

If a player is making a decision on where to play, he’s going to consider the total package, and does anyone actually think that Tavares’s total income at the end of next year will be less than if he’d played in Tampa?

Endorsement opportunities are irrelevant to the topic. This is about NHL salary.

What players make outside the NHL has no bearing on their contracts.

 

[SotasicA]

Endorsement opportunities are irrelevant to the topic. This is about NHL salary.

What players make outside the NHL has no bearing on their contracts.

It has a bearing on your taxes though. You have to report your total income.

So a player can make $1,000,000 and get taxed less than another player making $1,000,000 if that other player has other sources of income on top of his NHL salary. Also, some have more deductions than others.

 

[BahlDeep]

Cost of living will never make up for tax differences between Florida/Texas and Canadian provinces.

Nice try.

It will sure make up for it when you consider that 12.5M USD is arounf 16.5M CAD. Dude can buy a castle just with the exchange rate

 

[CanadianPensFan1]

It has a bearing on your taxes though. You have to report your total income.

So a player can make $1,000,000 and get taxed less than another player making $1,000,000 if that other player has other sources of income on top of his NHL salary. Also, some have more deductions than others.

And that's fair. But I still think that's an outside issue

Keep in mind .. what %age of the league have endorsement deals. Or rather, major deals worth an amount that would make it worth discussing. Top 5%? Top 10?

 

[SotasicA]

And that's fair. But I still think that's an outside issue

Keep in mind .. what %age of the league have endorsement deals. Or rather, major deals worth an amount that would make it worth discussing. Top 5%? Top 10?

What if they own stocks or property and earn money that way? In some cases they affect your income tax, like dividends if you actively buy and sell shares.

I know I earn about the same each year in salary, but my tax rate varies quite a bit depending on what I've been up to.

 

[tucker3434]

Endorsement opportunities are irrelevant to the topic. This is about NHL salary.

What players make outside the NHL has no bearing on their contracts.

It absolutely is relevant. You can’t just exclude the parts of the discussion where the scales tip in your favor. Endorsements are the other part of the entire financial picture.

 

[CanadianPensFan1]

It absolutely is relevant. You can’t just exclude the parts of the discussion where the scales tip in your favor. Endorsements are the other part of the entire financial picture.

I dont see how endorsements are relevant to a discussion on income tax rates depending on what team you play for.

For what it's worth, I dont think this will ever happy anyway. It would be way too difficult for the league to manage so they won't bother.

 

[Sky04]

Hahhahahahah keep whining.

 

[LightningStorm]

It absolutely is relevant. You can’t just exclude the parts of the discussion where the scales tip in your favor. Endorsements are the other part of the entire financial picture.

Goes back to the irony I mentioned of NY, LA and Toronto fans complaining about their markets putting them at a disadvantage.

 

[phil7488]

List of US states with no state income tax:

• Wyoming

• Washington

• Texas

• South Dakota

• Nevada

• Florida

• Alaska

Cups in recent memory: 0
Dallas and Tampa have 1 cup each to their name in the last 20 years. Meanwhile teams like Pittsburgh, Chicago, and LA have multiple in recent history, all having state income tax. This isn't anecdotal or conjecture evidence either. Income taxes or the lack thereof just haven't been proven to play a role in a teams success. It's just a scapegoat for underperforming teams fans to use as an excuse for not winning. And as I and others have already stated, this doesn't take into account property taxes and cost of living. It's a slippery slope that the league can't and shouldn't entertain.

 

[lifelonghockeyfan]

No, the NHL should move all teams out of high tax areas so players are not expected to fund dysfunctional government policies

Kidding mostly

The NFL and NBA gets most of it's revenue for TV. So maybe the players should live and play in the Cayman Islands just for tax reasons. Just have the players put on different jerseys but they all play in same stadium. Since no one has to attend the games, the games could all be recorded. Don't like the ending of the game, just do a redo of some critical plays.

 

[DistantThunderRep]

I dont see how endorsements are relevant to a discussion on income tax rates depending on what team you play for.

For what it's worth, I dont think this will ever happy anyway. It would be way too difficult for the league to manage so they won't bother.

Just like you are arguing taxation law is an advantage in certain states. So is the exchange rate and advantages for endorsements in another location. Its a real simple concept to understand if you didn't have your fingers in your ears.

 

[Canada Drai]

Nope.

 

[Dicky113]

We could go well beyond taxes.
We use economics to actually gain parity.

I mean I make video games for a living, and in all competitive video games, we balance the crap out of the systems using analytical data and feedback, getting the most mathematically accurate balancing based on all the data we have.

Are there under-served markets incapable of attracting UFAs?
How can the NHL leverage economics to get teams stuck in the basement faster?

What about tweaking things like, adding lottery balls to teams who have not been in the playoffs, or giving them extra cap space to play with?


I know some of you will think this is silly as hell, but we could put AI, in charge of the micro-tweaking based on all statistical data, or create algorithms for everything to ensure perfectly balanced playing field between teams.

Where is the unlike button

 

[LeHab]

Income taxes or the lack thereof just haven't been proven to play a role in a teams success. It's just a scapegoat for underperforming teams fans to use as an excuse for not winning. And as I and others have already stated, this doesn't take into account property taxes and cost of living. It's a slippery slope that the league can't and shouldn't entertain.

Some researchers claim it is a factor -> Income Taxes and Team Performance: Do They Matter? by Erik Hembre :: SSRN

 

[Beezeral]

I dont see how endorsements are relevant to a discussion on income tax rates depending on what team you play for.

For what it's worth, I dont think this will ever happy anyway. It would be way too difficult for the league to manage so they won't bother.

Endorsements are more lucrative depending on what team you play for. How’s that any different then taxes?

 

[pbgoalie]

List of US states with no state income tax:

• Wyoming

• Washington

• Texas

• South Dakota

• Nevada

• Florida

• Alaska

Cups in recent memory: 0
Dallas and Tampa have 1 cup each to their name in the last 20 years. Meanwhile teams like Pittsburgh, Chicago, and LA have multiple in recent history, all having state income tax. This isn't anecdotal or conjecture evidence either. Income taxes or the lack thereof just haven't been proven to play a role in a teams success. It's just a scapegoat for underperforming teams fans to use as an excuse for not winning. And as I and others have already stated, this doesn't take into account property taxes and cost of living. It's a slippery slope that the league can't and shouldn't entertain.

Tennessee has no state income tax on wages....but does on investments etc
New Hampshire as well

 

[Gnashville]

Tennessee has no state income tax on wages....but does on investments etc
New Hampshire as well

Actually Tennessee’s investment tax is almost gone it’s being phased out and will be gone by 2021

 

[CanadianPensFan1]

Endorsements are more lucrative depending on what team you play for. How’s that any different then taxes?

I dont disagree. But again, that's really only a thing for the top few % of players. The 4th line guys aren't getting endorsement deals big enough for it to be THAT much of a difference.

This is still besides the point. The thread is about income tax for salary on NHL contracts. Endorsements being part of the discussion is strange. Change the title of the thread and add it in and thats fine. But as it is, they dont have any bearing, imo.

 

[WillNy29]

I dont disagree. But again, that's really only a thing for the top few % of players. The 4th line guys aren't getting endorsement deals big enough for it to be THAT much of a difference.

This is still besides the point. The thread is about income tax for salary on NHL contracts. Endorsements being part of the discussion is strange. Change the title of the thread and add it in and thats fine. But as it is, they dont have any bearing, imo.

Doesnt work that way. Tax rates are calculated using a full income. Otherwise the taxbill would be inaccurate. Youd have to include deductions and credits too.

You cant just net a salary with a tax rate and a call that post tax salary cap hit of a player thats still not "fair" nor would it be correct.

 

[Pilky01]

It absolutely should.

 

[WillNy29]

The difference in taxes paid by players in different places is miniscule due to the nature of work, taxation on world wide income and jock tax treaty

 

[Beezeral]

I dont disagree. But again, that's really only a thing for the top few % of players. The 4th line guys aren't getting endorsement deals big enough for it to be THAT much of a difference.

This is still besides the point. The thread is about income tax for salary on NHL contracts. Endorsements being part of the discussion is strange. Change the title of the thread and add it in and thats fine. But as it is, they dont have any bearing, imo.

this thread is about making the nhl salary cap fair because teams in high tax states think they are at a disadvantage compared to the lower tax states. Naturally other "unfair" aspects of the salary cap rules are going to be brought up to show how bad an idea this is.

 

[CanadianPensFan1]

this thread is about making the nhl salary cap fair because teams in high tax states think they are at a disadvantage compared to the lower tax states. Naturally other "unfair" aspects of the salary cap rules are going to be brought up to show how bad an idea this is.

I dont disagree. I think it sucks that taxes are different in each state or province. But it is what it is. No matter what system the nhl implements, it will never be a level playing field. If its not income tax, its population base. If it's not that, its something else.

So I'm with you 100%.

 

[stampedingviking]

Not sure how anyone can say no. It is an unfair advantage. It needs to be addressed. The cap and revenue sharing has helped so many teams that now have that big advantage.

Because, unlike you, it's not that simple

As has been pointed out many times on here, there are other circumstances to take into account.