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Issue To Address With New CBA: Tax Disparity


Swedesessed

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https://www.tsn.ca/nhl/tavares-calculator

 

Very interesting and eye popping to see the numbers in front of you, Enter in 10M for AAV for John Tavares and when you realize JT would NET 5M more from Tampa or Dallas with a contract for 1 LESS season, it makes you realize not if,  but when this becomes an issue with the next CBA.

 

 

And just remember, this is just 1 contract. Imagine the advantages when you factor in 20. This hurts Toronto a ton, and especially hurts the Sabres because for some players, there are markets that are more desirable, and when you factor in the taxes, they won't come here. Those are just the facts.

 

Not sure what can be done to fix this, but something needs to be done. Maybe a percentage bump for teams with higher taxes to consider. The agents know this, the players know this, and it is being exploited in cap leagues like the NHL and even the NBA.

Edited by (E5)
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Does that calculator account for, ya know, how taxes actually work?

I have no idea how they work. I always hear this argument when players sign somewhere, but I'm pretty sure the Athletic just came out with an article yesterday detailing how it didn't matter

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I have no idea how they work. I always hear this argument when players sign somewhere, but I'm pretty sure the Athletic just came out with an article yesterday detailing how it didn't matter

 

It did.  I haven't read it yet.  It was focused more on higher Canadian taxes vs. lower US taxes, according to the headline.

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I have no idea how they work. I always hear this argument when players sign somewhere, but I'm pretty sure the Athletic just came out with an article yesterday detailing how it didn't matter

Basically, players pay tax based on where the game is played. So moving to a state without an income tax only affects their 41 home games. In other words, half their salary. And nobody actually pays the top rate anyway due to deductions. Then tack on escrow, and yea, the net difference for athletes across states is pretty small.

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Basically, players pay tax based on where the game is played. So moving to a state without an income tax only affects their 41 home games. In other words, half their salary. And nobody actually pays the top rate anyway due to deductions. Then tack on escrow, and yea, the net difference for athletes across states is pretty small.

Serious question, is what you say about playing in different states affecting the taxes paid really a thing?

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For some states, yes.

 

NYS taxes anything earned in NYS regardless of where the earner lives. There are others that do that as well.

 

Makes sense, I would be interested to see exactly the difference in net pay because I bet that there are states do have a significant advantage, that being said it's really not relevant to the CBA I wouldn't think

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