More Trouble in Ottawa

[odjickfan]

That’s the sad thing. A team will come along offering $2m less and he will still end up with more take-home pay after taxes, won’t have to deal with a toxic media, won’t have to deal with a toxic fanbase, and will probably have a warmer climate during the season.


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What I was about to say. Income tax rates are very high in Montreal. I think there is no state income tax in Nevada. A cup-contenders team in a sunny place with low taxes, and they 26 millions left under the cap. They have W, Karlsson and James Neal to sign and a few lower-level players, I'm sure they'll have some money left, even if Fleury signs for higher for 2019-20. Tavares and Erik Karlsson are both great options to make a run for the cup.

[Canada72]

I think they're both gone before summers over. Possibly before the end of June. They've been trying to move Hoffman since the season ended from what I hear, and I think karlsson wants a fresh start. (and who can blame him)

[itsbenngreat]

Erik Karlsson needs to get out of that toxic environment. This whole thing is so bizarre and terrible, especially if Hoffman's fiance is charged. Like people who do this think they won't get caught? The internet never forgets - winter is coming...

[pwskelly]

No way Tavares comes home to Canada. As most people already know, he can make top dollar living in a state where he pays low to no income tax. He can also choose to live somewhere where he can actually go to the store without getting mobbed.

I think of guys like Getzlaf, Perry, and Stamkos who were all rumoured to be returning to Canada (via the Leafs) and neither of these guys were willing to entertain that option.

Tavares is not going to agree to take less money, become the media's whipping boy, and give up a chance to go to a legit contender. If Tavares does leave the Isles, it will be for a team that's ready to win now.

[apod417]

Hoffman to the Sharks!.....I think that officially takes them out of the JT sweepstakes.....hope the Blues can convince him to sign.

[30ranfordfan]

No way Tavares comes home to Canada. As most people already know, he can make top dollar living in a state where he pays low to no income tax. He can also choose to live somewhere where he can actually go to the store without getting mobbed.

I think of guys like Getzlaf, Perry, and Stamkos who were all rumoured to be returning to Canada (via the Leafs) and neither of these guys were willing to entertain that option.

Tavares is not going to agree to take less money, become the media's whipping boy, and give up a chance to go to a legit contender. If Tavares does leave the Isles, it will be for a team that's ready to win now.

The Tax differences between most Canadian teams and most American teams are overblown.

If we're talking about Montreal vs Dallas, Tampa, Florida - it's a pretty big gap. Other than that, I have a hard time believing that the tax rate is going to be the difference maker in where a player signs.

The top tax bracket in the USA is 39.60%. State taxes are applied on top of that... but TX and FLA have none.
In Canada, the top tax bracket is only 33%, and provincial taxes are applied on that.... provincial tax brakets area almost all higher than any state brackets though.

PA, for example, has a flat tax of 3.07% that is tacked onto the 39.6%. A player on the Penguins or Flyers is paying 42.67% in taxes.
NY is even higher. Millionaire athletes would be into the marginal rate of 8.82% - and if they live in NYC, there's a city tax that would kick in too (but let's assume the hockey players are like most the ball players, and they actually live in Jersey).

There's also the FICA in America (Federal Insurence Contributions Act) which takes another couple of points.

Suppose a player is making $10,000,000 playing in NY State, and is avoiding city taxes (to keep it simple):

Total taxes (Fed+State+FICA): $4,791,704.... where as Florida would be $4,154,391

In Ontario it would be $5,315,836, BC would be $4,946,727, and AB would be $4,766,852. Quebec would be $5,302,915 - which makes me question how accurate the online tax calculator I'm using is (I was sure QC would be higher than ON). but I think my point stands.

If you're comparing the lowest taxed states (FLA, TX) to the higher taxes provinces (ON, QC) it's a fairly big gap. On $10m - the difference would be about 1.2 million in taxes. That is a lot.

The difference between NY state & Ontario would be less than half of that - and I honestly don't believe a superstar hockey player is picking his destination over $600k in take home pay. The difference in taxes between Buffalo & Vancouver is basically nothing.

[30ranfordfan]

I can't believe that Sens got that much for him. Given the circumstance, it was a decent deal.

Hoffman to the Sharks!.....I think that officially takes them out of the JT sweepstakes.....hope the Blues can convince him to sign.

[30ranfordfan]

And now they're back in the sweepstakes!

Hoffman goes to FLA for draft picks. SJ just cleared a load of cap space.

Hoffman to the Sharks!.....I think that officially takes them out of the JT sweepstakes.....hope the Blues can convince him to sign.

[apod417]

And now they're back in the sweepstakes!

Hoffman goes to FLA for draft picks. SJ just cleared a load of cap space.

Yeah they did and I didnt see that coming at all wow.

[piper1]

Florida got him for almost nothing so clearly adding him to a dressing room is seen as a real gamble