In the 18 Seasons since Fehr's Great Luxury Tax was implemented, the Yankees have Won their division 13 times, been to the World Series 7 Times, and Won it all 5 of those years. It enables them to continue to just overspend by paying the Tax because they make piles of money regardless. Since 2003, they've paid out $206M of the $227M in total luxury tax payments, all the while filling the coffers of their ownership group.
All that does is create a weighted structure where the Flyers, Rangers, Leafs, and maybe Red Wings would overspend for Free Agents and build All-Star teams like they have in the past, and pay out the tax, which would make a profit for those teams that met the cap floor. They'd STILL make piles of money.
That's not Parity, and its not good for the game as a whole.