The study I don’t have like freely at my fingertips to link broke down the situation well. If I can recall it I’ll edit and provide that source but it’s something I read last year….
It is not simply the tax rate and that oversimplifies too far. Players care about their individual effective tax rate not the general statewide percentage. it is the combination of things one can withhold, and to be honest, a bunch of tax stuff I didn’t care to really read apart from looking at it and thinking okay that makes sense. High net worth taxation is not the same as traditional income level earners. They broke down specific active players and showed that it’s roughly a 10-12% difference. They compared multiple players to different tax environments. Not all were equally bad but on average the gap is substantial, based on the study. I’ll try to dig it up.
I believe this is the group that had the study but I don’t see the specific study. Instead, here’s a robust calculator that does even more than a study. It appears Detroit to Dallas is a 7% swing, so you were closer than I was. Still, if you’re simultaneously attracting the best talent and getting it 7% off…that’s broken imo. If you pick Toronto and a no tax team it’s like 15%. Kinda wouldn’t be down with this if I were the leafs.
Canadian teams already face exchange rate headwinds. It’s going to damage the nhl to give these Canadian groups such opposition to success. As the salary cap rises the impact of exchange rate challenges grows with it. To have these teams also really challenged to be competitive is bad. Detroit doesn’t have it as bad but to me it’s negligible how undesirable some place could be so long as a group of places maintain the significant advantage. 5% is about as bad as 10% is about as bad as 15 - once youre in the bad group you’re passed over no matter how bad it is - until enough talent has filled the slots in those beneficial areas, the you and the other 26 are picking through the scraps and paying more for them, some paying much more; others just a little more…. A terrible system that doesn’t appear to be sustainable.
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