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Habs Recent Drafting

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The Ottawa Citizen printed a very good article this past weekend that shed light on the Habs recent drafting and free agent signing practices.

Anyone who has paid attention to the last couple of drafts will notice a lot of Americans being taken (Higgins, Komisarek, Fischer etc.) as well as a lot of Europeans (Kostitsyn brothers, Perezhogin, Plekanec). To boot, it seems that the only "major" free agents we get are Europeans as seen by Kovy and Samsonov. One might dismiss this as being the "new" NHL but the article points out that the Habs might be more successful in holding onto NON-Canadians because they are subject to different tax laws. Specifically, a Canadian working in Quebec and belonging to the highest income bracket, pays about 48% of his income to taxes while non-Canadians are subject to much lower tax rates. Any player in the NHL knows this and the Habs have had to adjust their drafting and signing practices accordingly.

It would seem that the future Montreal Canadiens will be anything but.

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48%!!!

No wonder we can't bring some FAs in!

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48%????????????????? That would be a reason for me to never move there. I pay 35%. But of course... we pay about 200% tax on petrol in sweden so maybe its not that much when concidered the other taxes we have here.

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OK, lets not get me started on taxes! Going through some real issues with my own life and taxes right now. If I hear anymore government tax increases and then increases is govt paychecks at any level followed by spending increases by the govt at any level; them I"m going to really be very very... sad! or should I say MAD!

Why should non citizen's or in this case athletes get a reduction in taxes? I'll argue that we should be treated equally, as a citizen of this country or non citizens, WHO work HERE and enjoy our standard of life.

So according to this article if I read it correctly, all I need to do is move to the US, apply for citizenship; then move back to Canada and pay less in taxes working for my current employer (hopefully they will wait till I get my trip to the US and back completed).

Now, if you buy that argument or lets say that hypothetically I carry out my last thought, then theoretically I'm avoiding my tax obligations. Now, we citizens of canada pay taxes so that we can have our high standard of life ( and pay for political paycheques ). Why don't non citizen who come to canada to work.. who enjoy our standard of life while here for the majority of their employment period.. why don't they pay the same in taxes?

Well, if this is the case then I argue that we are unfairly treated and should be given the lower tax bracket so that we are all treated fairly and equally for enjoying this standard of life. I dearly love my habs! I would do anything to see them succeed and do it dominatingly like in their historied past. But we citizens are being treated unfairly and I do not appreciate being taken for a ride like this.

I am so pissed about this I"m going to write to Zod! I hope when he get into power he changed the tax situation for all people working in this country and enjoying this standard of life. Either we all pay less in taxes or all pay more.

Either way I vote for Zod! :)

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I am pretty sure you would have to claim a permanent residence outside of Quebec. I think a seasonal home (or employee) is taxed much less than a permanent residence in Quebec. That would then require you to pay taxes at your home residence as well.

European players would have to do this anyways so it is not as big a deal to play in Montreal as opposed to another North American city. I imagine the United States also has lower taxes than Canada. I am sure they would prefer to play in their home country but Montreal as opposed to another Canadian city wouldn't be as huge a difference.

So Chips...as a Canadian...it would not be to your advantage to get citizenship from another country and move back here. It would be better to be Canadian and play in your own Country...or get American citzenship and move there permanently.

Edited by Mr. Nasty

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I am so pissed about this I"m going to write to Zod! I hope when he get into power he changed the tax situation for all people working in this country and enjoying this standard of life. Either we all pay less in taxes or all pay more.

Either way I vote for Zod! :)

I think Zod would demand about 90% of your income... and that you'd better buy domestic with the 10% you have left! :D

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how much money do you have to make to hit the 48%? I have a feeling most of us are not quite at that level...

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48% !!!!! OMG :o

I pulled a bitch fit when I was being taxed like at 35% but 48% !?! Sweet Jesus that's alot.

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I think Zod would demand about 90% of your income... and that you'd better buy domestic with the 10% you have left! :D

Ah! yes, thats true but at least Zod would be demanding and ruthless equally to all; and you will know from the start of his reign that everyone will be equally taxed at 90%.

Mr Nasty, I see your point; maybe I will stay here and enjoy my freedom and pay my taxes on top of taxes. I guess its better than getting taxed here and then having to pay tax in another jurisdiction, gosh with all this taxing its a wonder we are able to survive at all.

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I guess it doesn't help to mention that the state of Tenessee, home of the Predators and Jason Arnott, has NO income tax.

I guess it's pretty clear why he ended up where he did.

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to give you an idea of the taxation you would face in Québec:

provincial taxes 0 28 030 $ 16 %

28 030 $ 56 070 $ 20 %

56 070 $ – 24 %

federal taxes 0 36 378 $ 15.25 %

36 378 $ 45 529 $ 22 %

45 529 $ 118 285 $ 26 %

118 285 $ - 29 %

that is whitout counting the 7.5% TVQ taxes that you pay everything you buy. To wich you have to add a now slightly reduce 6% GST. :(

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to give you an idea of the taxation you would face in Québec:

provincial taxes 0 28 030 $ 16 %

28 030 $ 56 070 $ 20 %

56 070 $ – 24 %

federal taxes 0 36 378 $ 15.25 %

36 378 $ 45 529 $ 22 %

45 529 $ 118 285 $ 26 %

118 285 $ - 29 %

that is whitout counting the 7.5% TVQ taxes that you pay everything you buy. To wich you have to add a now slightly reduce 6% GST. :(

I'm a long time reader but first time poster on these boards. I felt, that as an aspiring Chartered Accountant, I had to jump in and explain the situation.

In Canada outside of Quebec, all taxes are paid to the Federal government in Ottawa who then distributes the proper percentage to the provinces. The provinces decide for themselves what their rates and brackets are going to be, just as the Federal government does. In Quebec, for political reasons which I will not comment on, a resident fills out two tax returns: One to the Quebec (Provincial) government and one to the Federal government.

Canada and Quebec work on a rising bracket system, which is meant to be a fair way of paying taxes (the richer you are, the more you pay). As you earn more money, you are progressively taxed more.

Here is an example to better understand.

Let’s say someone makes $100,000 in taxable income.

Provincial:

He or she pays no tax on the first 8,000. $ -

From 8,000 to 28,030, the person is charged at a rate of 16% $ 3,205

From 28,030 to 56,070, the person is charged at 20% $ 5,608

All earnings above 56,070 are charged at 24%. $ 10,543

Federal:

No tax on the first 8,000. $ -

From 8,000 to 36,378, the person is charged at 15.25% $ 4,328

From 36,378 to 45,529, the person is charged at 22%. $ 2,013

From 45,529 to 100,000, the person is charged at 29% $ 15,797

Total Tax on $100,000 $ 41,493

Frankster gave the Federal and Quebec Tax Brackets separately. To make it easier to understand, here is an approximation of combined rate that a Quebec resident has to pay:

Federal Bracket Provincial Bracket Marginal Rate

> $115,739 48.22%

> $71,190 45.71%

> $56,070 42.37%

> $35,595 38.37%

> $28,030 33.36%

Up to $28,030 29.36%

So our friend making $100,000 in taxable income would be charged a marginal/combined rate of 45.71% for a total of $45,710 in taxes.

Suffice to say that taxes are very high in Canada and even higher in the province of Quebec.

In Alberta, for example, there is a 10%provincial flat tax, regardless of how much you make. The $100,000 in Alberta would only have to pay $36,000 in taxes.

For NHL players who make hundreds of thousands to millions of dollars, the brackets at lower levels mean very little. Thus, one can say that an NHL player in Montreal will be taxed at 48.22% on all his earnings.

The system is complicated: There are many tax credits and tax deferrals available. Of issue is also whether an NHL player is considered a resident or not. Non-residents are taxed at a much lower rate. Additionally, Canada has many tax treaties with various countries, so that someone is not taxed twice in his/her home country and in Canada. If you guys want more info, let me know and I will post it.

Sorry for the long post.

Hope it helps!

GO HABS!!!

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:D

I'm a long time reader but first time poster on these boards. I felt, that as an aspiring Chartered Accountant, I had to jump in and explain the situation.

In Canada outside of Quebec, all taxes are paid to the Federal government in Ottawa who then distributes the proper percentage to the provinces. The provinces decide for themselves what their rates and brackets are going to be, just as the Federal government does. In Quebec, for political reasons which I will not comment on, a resident fills out two tax returns: One to the Quebec (Provincial) government and one to the Federal government.

Canada and Quebec work on a rising bracket system, which is meant to be a fair way of paying taxes (the richer you are, the more you pay). As you earn more money, you are progressively taxed more.

Here is an example to better understand.

Let’s say someone makes $100,000 in taxable income.

Provincial:

He or she pays no tax on the first 8,000. $ -

From 8,000 to 28,030, the person is charged at a rate of 16% $ 3,205

From 28,030 to 56,070, the person is charged at 20% $ 5,608

All earnings above 56,070 are charged at 24%. $ 10,543

Federal:

No tax on the first 8,000. $ -

From 8,000 to 36,378, the person is charged at 15.25% $ 4,328

From 36,378 to 45,529, the person is charged at 22%. $ 2,013

From 45,529 to 100,000, the person is charged at 29% $ 15,797

Total Tax on $100,000 $ 41,493

Frankster gave the Federal and Quebec Tax Brackets separately. To make it easier to understand, here is an approximation of combined rate that a Quebec resident has to pay:

Federal Bracket Provincial Bracket Marginal Rate

> $115,739 48.22%

> $71,190 45.71%

> $56,070 42.37%

> $35,595 38.37%

> $28,030 33.36%

Up to $28,030 29.36%

So our friend making $100,000 in taxable income would be charged a marginal/combined rate of 45.71% for a total of $45,710 in taxes.

Suffice to say that taxes are very high in Canada and even higher in the province of Quebec.

In Alberta, for example, there is a 10%provincial flat tax, regardless of how much you make. The $100,000 in Alberta would only have to pay $36,000 in taxes.

For NHL players who make hundreds of thousands to millions of dollars, the brackets at lower levels mean very little. Thus, one can say that an NHL player in Montreal will be taxed at 48.22% on all his earnings.

The system is complicated: There are many tax credits and tax deferrals available. Of issue is also whether an NHL player is considered a resident or not. Non-residents are taxed at a much lower rate. Additionally, Canada has many tax treaties with various countries, so that someone is not taxed twice in his/her home country and in Canada. If you guys want more info, let me know and I will post it.

Sorry for the long post.

Hope it helps!

GO HABS!!!

Excellent post. Wanna do my taxes? :D:D:D

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I'm a long time reader but first time poster on these boards. I felt, that as an aspiring Chartered Accountant, I had to jump in and explain the situation.

In Canada outside of Quebec, all taxes are paid to the Federal government in Ottawa who then distributes the proper percentage to the provinces. The provinces decide for themselves what their rates and brackets are going to be, just as the Federal government does. In Quebec, for political reasons which I will not comment on, a resident fills out two tax returns: One to the Quebec (Provincial) government and one to the Federal government.

Canada and Quebec work on a rising bracket system, which is meant to be a fair way of paying taxes (the richer you are, the more you pay). As you earn more money, you are progressively taxed more.

Here is an example to better understand.

Let’s say someone makes $100,000 in taxable income.

Provincial:

He or she pays no tax on the first 8,000. $ -

From 8,000 to 28,030, the person is charged at a rate of 16% $ 3,205

From 28,030 to 56,070, the person is charged at 20% $ 5,608

All earnings above 56,070 are charged at 24%. $ 10,543

Federal:

No tax on the first 8,000. $ -

From 8,000 to 36,378, the person is charged at 15.25% $ 4,328

From 36,378 to 45,529, the person is charged at 22%. $ 2,013

From 45,529 to 100,000, the person is charged at 29% $ 15,797

Total Tax on $100,000 $ 41,493

Frankster gave the Federal and Quebec Tax Brackets separately. To make it easier to understand, here is an approximation of combined rate that a Quebec resident has to pay:

Federal Bracket Provincial Bracket Marginal Rate

> $115,739 48.22%

> $71,190 45.71%

> $56,070 42.37%

> $35,595 38.37%

> $28,030 33.36%

Up to $28,030 29.36%

So our friend making $100,000 in taxable income would be charged a marginal/combined rate of 45.71% for a total of $45,710 in taxes.

Suffice to say that taxes are very high in Canada and even higher in the province of Quebec.

In Alberta, for example, there is a 10%provincial flat tax, regardless of how much you make. The $100,000 in Alberta would only have to pay $36,000 in taxes.

For NHL players who make hundreds of thousands to millions of dollars, the brackets at lower levels mean very little. Thus, one can say that an NHL player in Montreal will be taxed at 48.22% on all his earnings.

The system is complicated: There are many tax credits and tax deferrals available. Of issue is also whether an NHL player is considered a resident or not. Non-residents are taxed at a much lower rate. Additionally, Canada has many tax treaties with various countries, so that someone is not taxed twice in his/her home country and in Canada. If you guys want more info, let me know and I will post it.

Sorry for the long post.

Hope it helps!

GO HABS!!!

Welcome to the board! Thanks for the help!

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Say ADP. thanks for the info. when you put it like that I feel worse now than I did before about being taxed to death.. :-)

You should contribute more often; I"m sure you could have helped with how taxes make a real impact on team caps. and their spending capabilities from US to Canadian teams. and maybe even state to provincial break downs.

Welcome to HW.

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GEEZ LOUISE!!!

Thankx for all the info, ADP.

You will be the SHIZZLE as a C.A,

And do you wanna do my taxes too?

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I'm a long time reader but first time poster on these boards. I felt, that as an aspiring Chartered Accountant, I had to jump in and explain the situation.

In Canada outside of Quebec, all taxes are paid to the Federal government in Ottawa who then distributes the proper percentage to the provinces. The provinces decide for themselves what their rates and brackets are going to be, just as the Federal government does. In Quebec, for political reasons which I will not comment on, a resident fills out two tax returns: One to the Quebec (Provincial) government and one to the Federal government.

Canada and Quebec work on a rising bracket system, which is meant to be a fair way of paying taxes (the richer you are, the more you pay). As you earn more money, you are progressively taxed more.

Here is an example to better understand.

Let’s say someone makes $100,000 in taxable income.

Provincial:

He or she pays no tax on the first 8,000. $ -

From 8,000 to 28,030, the person is charged at a rate of 16% $ 3,205

From 28,030 to 56,070, the person is charged at 20% $ 5,608

All earnings above 56,070 are charged at 24%. $ 10,543

Federal:

No tax on the first 8,000. $ -

From 8,000 to 36,378, the person is charged at 15.25% $ 4,328

From 36,378 to 45,529, the person is charged at 22%. $ 2,013

From 45,529 to 100,000, the person is charged at 29% $ 15,797

Total Tax on $100,000 $ 41,493

Frankster gave the Federal and Quebec Tax Brackets separately. To make it easier to understand, here is an approximation of combined rate that a Quebec resident has to pay:

Federal Bracket Provincial Bracket Marginal Rate

> $115,739 48.22%

> $71,190 45.71%

> $56,070 42.37%

> $35,595 38.37%

> $28,030 33.36%

Up to $28,030 29.36%

So our friend making $100,000 in taxable income would be charged a marginal/combined rate of 45.71% for a total of $45,710 in taxes.

Suffice to say that taxes are very high in Canada and even higher in the province of Quebec.

In Alberta, for example, there is a 10%provincial flat tax, regardless of how much you make. The $100,000 in Alberta would only have to pay $36,000 in taxes.

For NHL players who make hundreds of thousands to millions of dollars, the brackets at lower levels mean very little. Thus, one can say that an NHL player in Montreal will be taxed at 48.22% on all his earnings.

The system is complicated: There are many tax credits and tax deferrals available. Of issue is also whether an NHL player is considered a resident or not. Non-residents are taxed at a much lower rate. Additionally, Canada has many tax treaties with various countries, so that someone is not taxed twice in his/her home country and in Canada. If you guys want more info, let me know and I will post it.

Sorry for the long post.

Hope it helps!

GO HABS!!!

Awesome post. Nice to have an intelligent, easy to understand response from a professional instead of the regular crap we post on about what we think or how we percieve things to be. ITs nice to know that Habsworld fans come from a broad range of backgrounds and can help other Habsworld members understand how somethings (ie., taxes) actually work.

Thanks for the enlightenment. Even with the McGuinty Health Care tax that he slapped us with a few years ago (costs me an extra $900 a year), I'm glad I work in Ontario as opposed to Quebec. But I really have to find myself a job in Alberta. Not only do you pay less tax, but they even send out rebate cheques every once in awhile!!

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Awesome post. Nice to have an intelligent, easy to understand response from a professional instead of the regular crap we post on about what we think or how we percieve things to be. ITs nice to know that Habsworld fans come from a broad range of backgrounds and can help other Habsworld members understand how somethings (ie., taxes) actually work.

Thanks for the enlightenment. Even with the McGuinty Health Care tax that he slapped us with a few years ago (costs me an extra $900 a year), I'm glad I work in Ontario as opposed to Quebec. But I really have to find myself a job in Alberta. Not only do you pay less tax, but they even send out rebate cheques every once in awhile!!

No problem guys.

I'm glad the info helped!

Tax season is coming up.....

Just kidding!

Go HABS!!!

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Great breakdown of the tax situation, ADP. I remember during the free agent period, some people here were arguing that the higher taxes weren't a legit reason for some UFAs not wanting to come to Montreal. Perhaps you have opened their eyes to just how bad the taxes are.

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And what does one say to those who say that we shouldn't give tax breaks to these highly paid prima-donnas?

I'm not saying that I agree with this (or disagree)... I just wonder how you guys respond to that.

:king: :hlogo: :king:

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I think that the new NHL should take taxes in to consideration and allow teams with higher tax brackets to spend more $$$ on their players. So the Habs would end up with the highest allowable cap ... if we want parity among teams this should be taken in to consideration, IMO.

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Taxes should be related to effort when it comes to hockey players. The high work output of those who shall remain unnamed should be at around 45% (a slight break). Whereas those who feel the need to be Mike Ribeiro should be taxed at around 92%.

Fair is fair.

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Taxes should be related to effort when it comes to hockey players. The high work output of those who shall remain unnamed should be at around 45% (a slight break). Whereas those who feel the need to be Mike Ribeiro should be taxed at around 92%.

Fair is fair.

:lol:

Forget 92%, Mike should be taxed at 106% :P

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