Anyone know anything about the extent of those Canadian Taxes? I mean it could make 4.1 Mil from houston [NO STATE INCOME TAXES] on par with Toronto's 5 mil or more? Could someone closer or more knowledgable on Canadian Taxes let me know Rocket River ------------------
Cuttino is a fool if he leaves here. NOBODY (almost) likes playing in Canada. People refuse to go there and demand trades or leave once they are there. If Vince wants to play with Cuttino so bad why doesn't he come to Htown in a couple of years? If it's only between us and Toronto, I really like our chances. Plus can't we resign him in a year or two and give him more jack than Toronto. Also, even with Vince Carter, the Raptors hardly get any press.
I posted part of this before, but since you asked specifically: following is #54 from Coon's CBA FAQ: 54. Are teams really competing on a level playing field? Since the tax rate is different in the different states and Canada, don't the teams in a more "tax friendly" state have an advantage over the other teams? Yes they do. For example, when Shaquille O'Neal became a free agent in 1996, the Magic and Lakers competed for his services. Since Florida has no state income tax, Orlando's offer, which was lower, was actually higher in terms of the net dollars Shaq would have received. LA overcame this disadvantage by offering to pay Shaq his entire yearly salary each year in a lump sum (present value of money, yadda yadda). The new CBA closed the loophole that LA used to sign Shaq. Now, all salary must be paid bi-weekly throughout the season. However, they did add an extra regulation to help neutralize the tax disadvantage of the Canadian teams. All teams are permitted to offer a bonus of up to 25% (see the previous question). The key point is that for U.S. residents in Canada, this bonus is taxed at just 15%. Using this bonus, the Canadian teams can nearly achieve tax neutrality. ------------------ Rockets Draft Obligations Summary http://www.gaffordstudios.cjb.net/
there's also an issue known as unitary taxation. the tax issue only affects one-half a player's salary, corresponding to his home games, since road games expose players to local income taxes on a game-by-game basis. all nba players pay taxes to canada reflecting the games they play there, proportionate to their salaries (they do in california as well, if i'm not mistaken).
