Quote:
Originally Posted by DiracSpike
lol you know you’re really reaching when you’re tossing in subjective standards like “quality of life” and “access to services” to try and somehow argue that there isn’t a massive tax difference between different jurisdictions. The fact is you keep a lot more of your money in Arizona over Toronto. The fact is you’re paying 53% of your income to taxes in Toronto, and 41% in Arizona. If you’re Matthews making 10 mil a year that’s a difference of 1.2 million per year in taxes. So no, you’re wrong, it’s millions of dollars over a contract term difference. But I’m sure people are desperate to pay more to live in buffalo or Chicago because of infrastructure differences...
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Except it isn't a single back of napkin calculation like that.
For one thing AFAIK players have to file in [nearly?] every jurisdicition they play (which is likely advantageous in the sense that they are spreading income ~20 different places at the lowest brackets). So in TOR or OTT, you're probably filing ~44/82 of your income in ON.
Conversely, a NAS player may only be able to file ~41/82 of their income there...so whatever silly/cursory calculation of the delta between jurisdictions needs to be cut in half.
Of course, this is all before getting into the wide array of simple & creative methods to reduce tax burdens. So the final difference gets close to negligible, depending on individual priorities/preferences.
A huge benefit to playing in a hockey crazed market is endorsement (and other business) opportunities. While not
that lucrative for most players, that income can be sheltered/invested in a professional corporation and not drawn as personal income until a player retires
In the long run it can all come pretty close to a wash, or there can be a substantial (but not earth-shattering) difference depending on individual circumstances.