Quote:
Originally Posted by rhino
Dude…. The player example is 1 who lives in and plays in Canada. The exchanged rate to CDN after taxes makes the few hundred thousand more due to no state taxes in Florida for example disappear pretty quickly. The player makes USD but pays for things in CDN
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Dude… You don't get the same stuff for a Canadian dollar in Canada that you get for a U.S. dollar in the U.S. At the moment, you get about 20% less. That wipes out most of your alleged advantage.
Sometimes the exchange rate puts the CAD above purchasing power parity, sometimes below. Latest exchange rate is approximately 1 USD = 1.35 CAD. Purchasing power parity, last time I checked, was about 1 USD = 1.23 CAD.
Then consider that if a player has any smarts at all (or his agent does), he's socking most of that money away into investments. Stocks, bonds, real estate, futures – you buy all of those things at the current exchange rate, not at par. Right now, for instance, a share of Apple trades at $169 US. If you offer somebody $169 Canadian for that share, they are not going to take it, even if the trade takes place in Canada.