I understand the tax situation. But this is not the reason players aren't signing with Toronto. Montreal (not Toronto) has the highest tax overall rate on player salaries per Forbes report at 54.6%, however, they manage to field playoff teams consistently and attract free agents, talent, and develop their players just fine.
Ducks / Kings / Sharks (California) have just about the same tax situation as Toronto at 53.1%. And they are all successful teams that are able to attract free agents and talent and cups. So find something else to hang your hat on. You were not able to attract the biggest free agent ... and it wasn't Taxes and Sponsorship Money the reason why players don't come to Toronto. It is probably and most likely because of you - the TML fan that they don't come play there.