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Max Pacioretty Watch


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6 hours ago, xXx..CK..xXx said:

So much for Pacioretty apparently seeking out max term and dollar after his last contract negotiation. 7 mil x 4 years seem reasonable. 

 

It's the term that I find really surprising. That doesn't fit the narrative at all. And I'm sure he could have gotten more on the UFA market. This suggests either that he decided to accept less than he initially hoped, or else that the rumours of him wanting a big score were wrong all along (planted by management, maybe -?).

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Salary tax is based upon the place in which that particular game is played. So only 50% of the games played by any player are affected by that home team tax rate. Now that still makes a huge difference, but signing bonuses also avoid massive amounts of tax. U.S players like Pacioretty can attempt to have a huge portion of their salary in bonuses, which are only taxed at 15% as opposed to the near 50% on regular salary. If they then live in a state such as Florida in the offseason, they pay no US income tax.

 

Beyond that, markets like California, and Nee York City have tax rates near Montreal  level anyway, so it’s probably less of a negative than it initially looks.

 

The Canadian market can look like a tax black hole, but a smart agent can avoid the majority of that issue. It’s just hard to compete with markets like Florida.

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28 minutes ago, Meller93 said:

Salary tax is based upon the place in which that particular game is played. So only 50% of the games played by any player are affected by that home team tax rate. Now that still makes a huge difference, but signing bonuses also avoid massive amounts of tax. U.S players like Pacioretty can attempt to have a huge portion of their salary in bonuses, which are only taxed at 15% as opposed to the near 50% on regular salary. If they then live in a state such as Florida in the offseason, they pay no US income tax.

 

Beyond that, markets like California, and Nee York City have tax rates near Montreal  level anyway, so it’s probably less of a negative than it initially looks.

 

The Canadian market can look like a tax black hole, but a smart agent can avoid the majority of that issue. It’s just hard to compete with markets like Florida.

 

Stars like Price, Subban and Patches loved Montreal and wanted to play here all their careers. So I'm with you, I don't think it's *that* big a deal.

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39 minutes ago, Meller93 said:

Salary tax is based upon the place in which that particular game is played. So only 50% of the games played by any player are affected by that home team tax rate. Now that still makes a huge difference, but signing bonuses also avoid massive amounts of tax. U.S players like Pacioretty can attempt to have a huge portion of their salary in bonuses, which are only taxed at 15% as opposed to the near 50% on regular salary. If they then live in a state such as Florida in the offseason, they pay no US income tax.

 

Beyond that, markets like California, and Nee York City have tax rates near Montreal  level anyway, so it’s probably less of a negative than it initially looks.

 

The Canadian market can look like a tax black hole, but a smart agent can avoid the majority of that issue. It’s just hard to compete with markets like Florida.

Its based on residence.  Not where the game is played.

 

Residence meaning where you live the majority of the year.

 

You pay taxes in one jurisdiction... not in 31 different ones.

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2 hours ago, Commandant said:

Its based on residence.  Not where the game is played.

 

Residence meaning where you live the majority of the year.

 

You pay taxes in one jurisdiction... not in 31 different ones.

I could be wrong, but to my knowledge unless they have to pay both, it depends on the state you’re in. It’s known as jock tax.

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38 minutes ago, Meller93 said:

I could be wrong, but to my knowledge unless they have to pay both, it depends on the state you’re in. It’s known as jock tax.

 

Thats a seperate tax... its not income tax. 

It is not in every state. 

Some states have instituted "jock taxes" to tax every player that plays a game there, but its not every state.   Its actually pretty rare.

In general, income tax is based on principal residence. There are a number of tax treaties between Canada and the US that allow a person whose residence is in Canada but works some of his time in the US, to pay only canadian taxes, and vice versa.  Taxing people would be a nightmare otherwise.  Think of it this way... a multinational company has all their managers from canada and the US have a conference in New York city.  Do they all pay income tax to New York state for 3 days of work?  Nope.  

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23 minutes ago, Commandant said:

 

Thats a seperate tax... its not income tax. 

It is not in every state. 

Some states have instituted "jock taxes" to tax every player that plays a game there, but its not every state.   Its actually pretty rare.

In general, income tax is based on principal residence. There are a number of tax treaties between Canada and the US that allow a person whose residence is in Canada but works some of his time in the US, to pay only canadian taxes, and vice versa.  Taxing people would be a nightmare otherwise.  Think of it this way... a multinational company has all their managers from canada and the US have a conference in New York city.  Do they all pay income tax to New York state for 3 days of work?  Nope.  

Well jock tax sounds like a real kick in the nuts 

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2 hours ago, Meller93 said:

Well jock tax sounds like a real kick in the nuts 

 

Its an easy campaign issue for a politician. 

 

Hey we will raise money by taxing high-paid out of town athletes that play games in our cities, and use the money to (lower taxes or improve services).   

Its easy to get a lot of votes on that platform.  But the money ends up being pretty minimal compared to most government budgets. 

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1 hour ago, The Chicoutimi Cucumber said:

I'm not crying for a tax on the 1%, sorry.

 

If it was truly a problem (it isn't) the NHL could just factor tax difference into the cap. I don't think the owners have ever given it thought. 

 

This is the stuff bad teams complain about. California teams pay high taxes. Didn't stop the Kings and Ducks. Didn't stop the Sharks from making the final. Low taxes certainly haven't helped the Oilers or Flames either. 

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