Quote:
Originally Posted by JHikka
Athletes definitely take into account things like personal income tax rates when selecting cities (along with weather...). It's why Florida and California are such popular destinations for players. In Canada you're losing 50%+ of your salary, in the US it's between 30%-40%. Adds up over time.
That, and if you can show up to the rink in flip flops for practice in December, i'd probably take that, too.
|
Everybody has their own preferences. Shane Doan loved Phoenix and is still there despite playing most of his career in an empty barn. Max Domi flamed out in Phoenix and lost focus, but since going to Montreal (albeit in a trade so he had no real say in the matter) he's been really good. Some players need pressure to thrive and want the spotlight. Others, not so much.
The calculations also get more complicated for taxes when you take into account a players place of residence and state jock taxes for visiting teams in the US.
Contrary to popular belief, players in California are now over 40%, but still below the Canadian clubs which are pushing 50% (Montreal is highest at 49.7%). Florida, Texas, Tennessee and Nevada have no income tax at the state level, so they only have to deal with the 31% federal income tax, which was a probably a big reason Stamkos stayed in Tampa. New York is 42%, Toronto is 47%, so not quite a wash but not enough to really detract from going to your hometown either as far a John Tavares was concerned.
A lot of players have started to exploit the system by getting paid in signing bonuses in Canada, which CRA can only tax for 15% while maintaining a residence in the US. When he signed in Toronto, Phil Kessel exploited the hell out of the CBA, CRA and IRS rules by getting an annual signing bonus and maintaining his offseason home in Florida. He basically exempted 1/3 of his salary from the CRA by getting a signing bonus, and avoided state taxes by living in Florida for 5 months per year.
Prev
Linear Mode
