Quote:
Originally Posted by Weitz
Thats not what I was saying. I thought someone mentioned you could lure people for a contract for less money.
For example 8 million a year here is similar to 9 million a year in Toronto after tax. Since they are the same take home amount I thought some said you could use that to get someone to sign for 8 million instead of 9 million which wouldn't happen.
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I am saying that it would happen, all other things being equal. A player signing for $8M/season would theoretically take home $4.9 in Alberta, which would still be significantly more than playing for $9M in Toronto or Montreal. The only risk to the player would be if the team trades him to a city with a higher tax rate after he signed in Alberta at a 'tax friendly' discount.
This being said, there are certainly many more complexities to the tax structure than what this article implies. American citizens would have to file and pay American taxes even if they played in a Canadian market with the recent system changes. I would be interested to hear what an NHL agent would say on the matter, since they probably work through this as part of the negotiation with teams.