Salary Cap: Taxes $$$

[ahmedou]

The Montreal Canadiens players are ranked 1st in the NHL in the taxes. Zero surprises.

In the past, a lot of superstars that didn't wanted to sign to Montreal because of the taxes...

In the present, a lot of superstars are interested to sign to Montreal even if there's taxes!

Click to read more...

 

[Habs Halifax]

The Montreal Canadiens players are ranked 1st in the NHL in the taxes. Zero surprises.

In the past, a lot of superstars that didn't wanted to sign to Montreal because of the taxes...

In the present, a lot of superstars are interested to sign to Montreal even if there's taxes!


View attachment 960421

When you come to Montreal and our core is meh and you have to be the star, they pass because of multiple reasons (taxes, team depth, and pressure hockey market).

However, when you have MSL as a players coach and a team on the rise with more talent to come, you obviously are open to it. Winning is the best ingredient.

 

[badfish]

I don't think the calculus is as simple as presented in this graph. I'm sure they are using RCAs and other tax deferral schemes to reduce their taxation impact.

 

[DAChampion]

Is this just as simple as looking at the peak marginal tax rates? Because that's not valid.

Cost of living matters too, e g. How long a commute to purchase a nice house for under 1 million dollars?

 

[Habs Halifax]

I don't think the calculus is as simple as presented in this graph. I'm sure they are using RCAs and other tax deferral schemes to reduce their taxation impact.

What's going on with Tavares and revenue Canada? I hear he owes them money on something he tried that didn't work?

 

[GrandBison]

It could be right if you are a canadian citizen and don't want to invest in a good accountant.

 

[LaP]

The Montreal Canadiens players are ranked 1st in the NHL in the taxes. Zero surprises.

In the past, a lot of superstars that didn't wanted to sign to Montreal because of the taxes...

In the present, a lot of superstars are interested to sign to Montreal even if there's taxes!


View attachment 960421

It's a lot more complexe that this chart pretends.

 

[HuGort]

The Montreal Canadiens players are ranked 1st in the NHL in the taxes. Zero surprises.

In the past, a lot of superstars that didn't wanted to sign to Montreal because of the taxes...

In the present, a lot of superstars are interested to sign to Montreal even if there's taxes!


View attachment 960421

We've had to overpay in past to keep players.

 

[sampollock]

QC govt needs to step in and fix this

 

[schwang26]

Is this just as simple as looking at the peak marginal tax rates? Because that's not valid.

Cost of living matters too, e g. How long a commute to purchase a nice house for under 1 million dollars?

Ya but Toronto, Vancouver, NY, LA. All would have a high cost of living. No cheap housing anywhere near those places

 

[schwang26]

QC govt needs to step in and fix this

The league should fix it. Not the government. That’s not fair to regular tax payers. The league should adjust the cap for teams that are heavily taxed compared to US markets with no tax. I know there’s arguments against this but it’s really not a level playing field especially when you have a family. I can’t imagine many American vets with a family wanting to go to Montreal via trade or free agency.

 

[Pat Riot]

Former players and sport agents said that there is ways to lower taxes to a point where is comparable to other cities. Dont know why people still bring up taxes,when its not an issue. They have the best fiscalists working for them

 

[Sorinth]

What's going on with Tavares and revenue Canada? I hear he owes them money on something he tried that didn't work?

I haven't followed the story too closely but from what I understand Tavares is claiming that he was a US resident when he got paid the signing bonus in year 1 of his deal, and as such it would be taxed via the US rules rather then the Canadian rules. I think there's also something about the bonus not being salary.

Anyways regardless of how it plays out it's simply proof that the type of analysis presented by the OP just doesn't match what players are actually paying in real life.

On top of which there's teams that are often considered desirable for UFAs at the top of the list. Taxes just aren't as big a deal as people make it up to be.

 

[Team_Spirit]

Delete

 

[Team_Spirit]

Former players and sport agents said that there is ways to lower taxes to a point where is comparable to other cities. Dont know why people still bring up taxes,when its not an issue. They have the best fiscalists working for them

Tavares is being sued I'm sure he has the best fiscalists. Bottom line it's a headache and numbers don't lie;

Leafs and Canucks 100pts players get 12M & Panthers, Stars get theirs under 10M

League must fix this and let the Habs spend 10% more.

 

[DAChampion]

Recent Cup winners are all bottom 10 in taxation.

And before that it was St-Louis, Pittsburgh, Washington DC, LA, Chicago for about a decade all under the same cap rules and mostly the same tax structures.

Illinois and Pennsylvania both have comparatively high property tax and sales tax rates.

 

[Sorinth]

Tavares is being sued I'm sure he has the best fiscalists. Bottom line it's a headache and numbers don't lie;

Leafs and Canucks 100pts players get 12M & Panthers, Stars get theirs under 10M

League must fix this and let the Habs spend 10% more.

Which just goes to show how players value going to a winning team. The $2m difference between Toronto and Panthers is probably more about having a team that can make it past the first round of the playoffs then it is taxes.

 

[Bombshell11]

The Montreal Canadiens players are ranked 1st in the NHL in the taxes. Zero surprises.

In the past, a lot of superstars that didn't wanted to sign to Montreal because of the taxes...

In the present, a lot of superstars are interested to sign to Montreal even if there's taxes!


View attachment 960421

Hughes said you can avoid those taxes with upfront pmts signing bonuses

QC govt needs to step in and fix this

Yeah, make it 100% instead

They'll fix it alright

 

[Team_Spirit]

And before that it was St-Louis, Pittsburgh, Washington DC, LA, Chicago for about a decade all under the same cap rules and mostly the same tax structures.

Illinois and Pennsylvania both have comparatively high property tax and sales tax rates.

The cap was 60 to 70M back then so the ~5 to 10% difference was managable. Now it's 88 going to 97 and the trend is clear.

Property/sales tax means nothing they only spend a fraction of their income where they play.

Which just goes to show how players value going to a winning team. The $2m difference between Toronto and Panthers is probably more about having a team that can make it past the first round of the playoffs then it is taxes.

It's 2M on 1 star player. 12M total.

 

[Bombshell11]

Did you guys know how gas in canada is taxed?

There's 10 cents per L that is added by the federal
15 cents per L that is added by the Provincial
Some other bs tax that is added as well

Then you get taxed GST QST on the already taxed gas

And you gotta pay that with your taxed salary, which is also taxed to your employer.

Then they inflate the market, they keep increasing the minimum wages

AND NOW, they'll build humanoid robots to replace the minimum salary jobs.


Hello...

 

[Jurivan Demidovsky]

 

[GrandBison]

The problem is strictly related to canadian citizens, if you spend more time in Canada than in the US and you are working in Canada, you'll have to pay your taxes in Canada. But if your create a foundation and own an incorporated business, taxation in Qubec become really competitive, especially if you don't need all your money for your lifestyle.

 

[Habs Icing]

QC govt needs to step in and fix this

LOL! Good one.

 

[McGuires Corndog]

Did you guys know how gas in canada is taxed?

There's 10 cents per L that is added by the federal
15 cents per L that is added by the Provincial
Some other bs tax that is added as well

Then you get taxed GST QST on the already taxed gas

And you gotta pay that with your taxed salary, which is also taxed to your employer.

Then they inflate the market, they keep increasing the minimum wages

AND NOW, they'll build humanoid robots to replace the minimum salary jobs.


Hello...

We get the royal shaft in Canada. But hey, I’m told budgets balance themselves so just don’t worry about it.

 

[DAChampion]

Property/sales tax means nothing they only spend a fraction of their income where they play.

A few percentage points here, a few percentage points there, and pretty soon you're talking real money.