How is this allowed and not more talked about? Please explain!

[xcheck]

Decent read on the topic:

NHL free agency shows teams in states with no income tax have an advantage

Four of the past five Stanley Cup champions are based in a place with no state income tax, and the flood of talent to those locales continued in NHL free agency.

apnews.com

 

[emsomaso]

The company I work for has a new policy for remote workers. Your pay will vary depending on where you live. So, move out of CA and you will probably get a pay cut..

This is a real issue. However, just because teams get more for their $, does not mean they will be cup champs, or even a good team. Just look at this Kings team. Spending close to the cap and they are not very good.

No, that is not granted. But the below info speaks for itself:

Four of the past five Cup champions — Florida, Vegas, Tampa Bay twice — are from no-tax states. Eleven of the past 20 conference finalists have come from no-tax states.

 

[emsomaso]

Decent read on the topic:

NHL free agency shows teams in states with no income tax have an advantage

Four of the past five Stanley Cup champions are based in a place with no state income tax, and the flood of talent to those locales continued in NHL free agency.

apnews.com

Yes, especially these parts:

”Averaging out Reinhart’s salary to $8.625 million annually, he owes $3.15 million in taxes in Florida. He would pay $1.1 million more in California, $1.5 million more in New York and $1.4 million more in Toronto, according to a calculator provided publicly by Cardinal Point Athlete Advisors.

Over the length of the contract that could save him up to $12 million.”

and this:

“That’s part of the reality,” San Jose Sharks general manager Mike Grier said. “I think it is an advantage for those teams: They can obviously pay guys a little bit less, and guys are happy to go there. So not to their fault or anything, those teams take advantage of the situation as they should.”

 

[KingKopi]

I saw in the free agency thread how several members praised the Tampa GM for being able to once again get their players to accept lower salaries than they would get from other teams. This time it was Victor Hedman who have accepted a new contract with a cap hit of ”just” $8MM, before him both Stamkos and Kusherov have done the same = taken less money to stay in Tampa.

But the ”problem” is that they simply haven’t! Those players actually get more money in the pocket accepting way less in Tampa compared to what they would get in for example LA.

I seriously don’t understand how the other teams, like Kings, can accept this injustice and advantage that Tampa (and other teams like Florida and Vegas) get when their players don’t have to pay state income taxes!?!?

Of course their GM can make ”great” deals with his players when their offer of $8MM is better and gives them more money than other teams offers of $10MM!

And this is just for one player. If you take the whole team into consideration it gets even more unfair! A Kings salary cap at $85MM is basically the same as a $100MM salary cap for Tampa! That’s two great players that Tampa gets ”for free” compared to what Kings can pay. Talk about having a HUGE advantage in the hunt for a Stanley Cup!!

What’s the point with a salary cap if it’s like this? Can someone please explain?

Here is an article that better explains what I mean:
Tax tricks: How an $8.5M Lightning contract keeping Steven Stamkos in Tampa is better than $10.5M to leave

Been saying this for years. Look at how many titles a Florida team and Vegas have won lately. 4 out of last 5 champions. With CA taxes being one of the highest, it definitely has to be considered a huge disadvantage.

 

[ICE24]

This here the problem in a nutshell- California is seeing an exodus of people who are producers & tax payers. The state will still have the same bills- but less producers to pay them. You don’t need to be an accountant to see where this ends.

So true, my financial advisor said a similar thing. People are leaving and taking their money to these states. The people coming in, don't have that type of money. He was one of them, that left the south bay to live in middle america.

 

[kingnut]

I think the San Diego Mayor made a comment about 3 yrs ago that the state needs to do something to keep ppl from leaving the sate. More ppl leaving cali then incoming

 

[jammer06]

I think the San Diego Mayor made a comment about 3 yrs ago that the state needs to do something to keep ppl from leaving the sate. For ppl leaving cali then incoming.

Unfortunately their plan has been to attempt to continue to tax them when they move. Military people been fighting this fight with the state for a loong time.
Reality is however that those calculators aren't perfect, a lot of these athletes pay where the work is performed, meaning when they play away games those games get taxed at the location played.
In any case there is no practical way to "level" that field and any attempt by the league to tie hrr calculations to a legislative body would be futile.

 

[kingnut]

Unfortunately their plan has been to attempt to continue to tax them when they move. Military people been fighting this fight with the state for a loong time.
Reality is however that those calculators aren't perfect, a lot of these athletes pay where the work is performed, meaning when they play away games those games get taxed at the location played.
In any case there is no practical way to "level" that field and any attempt by the league to tie hrr calculations to a legislative body would be futile.

We have been thinking of leaving the state for the taxes and politics when we heard about still taxing after you lv. A the end of the day, not too many options. TX and FLA too hot and cost of electricity in TX is absurd. We did like Tennessee but no tax break there. Wash has estate tax I think.

I do like FLA for 7-8 mos, went thru bootcamp there and found the summer months w the humidity unbearable.

 

[jammer06]

We have been thinking of leaving the state for the taxes and politics when we heard about still taxing after you lv. A the end of the day, not too many options. TX and FLA too hot and cost of electricity in TX is absurd. We did like Tennessee but no tax break there. Wash has estate tax I think.

I do like FLA for 7-8 mos, went thru bootcamp there and found the summer months w the humidity unbearable.

If you want improving weather there's always Wisconsin or the UP

 

[DRice]

We have been thinking of leaving the state for the taxes and politics when we heard about still taxing after you lv. A the end of the day, not too many options. TX and FLA too hot and cost of electricity in TX is absurd. We did like Tennessee but no tax break there. Wash has estate tax I think.

I do like FLA for 7-8 mos, went thru bootcamp there and found the summer months w the humidity unbearable.

And that is something many people just don't understand. All states have budgets and they're going to get your money one way or another. No income tax usually means high property tax, high sales tax, high value added tax, etc. I think the last time I looked at total tax burden, CA came in like 5th. Still high, of course.

Now cost of living is a little different and I think CA came in 3rd highest as far as your everyday expenditures.

And what good is keeping more of your money if you have to spend 80% of the time indoors??

Ah, found the tax burden website:

How the 50 States Rank By Tax Burden

Residents of New York state are burdened by taxes the most, while Alaska residents have the lowest tax burden, a WalletHub study found.

www.cpapracticeadvisor.com

 

[kingnut]

If you want improving weather there's always Wisconsin or the UP

I would miss the ocean, still try and surf and fish occasionally. We have friends in Wyoming that invite us up there all the time to hang out (They are retired) and spend time up there.

 

[kingnut]

And that is something many people just don't understand. All states have budgets and they're going to get your money one way or another. No income tax usually means high property tax, high sales tax, high value added tax, etc. I think the last time I looked at total tax burden, CA came in like 5th. Still high, of course.

Now cost of living is a little different and I think CA came in 3rd highest as far as your everyday expenditures.

And what good is keeping more of your money if you have to spend 80% of the time indoors??

Ah, found the tax burden website:

How the 50 States Rank By Tax Burden

Residents of New York state are burdened by taxes the most, while Alaska residents have the lowest tax burden, a WalletHub study found.

www.cpapracticeadvisor.com

Yeah, our friends in TX pay a lot in Prop Taxes. And they get re assessed, forgot how frequently, but def makes a diff. Also, they are always dealing w potential hurricanes etc...

In fact I need to check in on them make sure Beryl didnt flood them out.

 

[symbology]

Consider that homes in CA coast 2x what they do in Texas. So, we pay a smaller percentage on 2x the value. It is mostly a wash in the end, but folks in CA pay a little more from what I can see. Also consider that the median income for CA is 85K and Texas is 75K. Texas has a lower sales tax rate, so when you combine property and sales tax, Californians lose by a fair margin.

A really sick fact is that in both CA and TX, the government employs about 16% of the workforse. Which, is around average. Government is to darn big.

 

[kingnut]

Consider that homes in CA coast 2x what they do in Texas. So, we pay a smaller percentage on 2x the value. It is mostly a wash in the end, but folks in CA pay a little more from what I can see. Also consider that the median income for CA is 85K and Texas is 75K. Texas has a lower sales tax rate, so when you combine property and sales tax, Californians lose by a fair margin.

A really sick fact is that in both CA and TX, the government employs about 16% of the workforse. Which, is around average. Government is to darn big.

The "margin" being the weather tax!

 

[ICE24]

As we all know there is good and bad in every place you live. Unfortunately CA is pricing people out and it's not just taxes. I've lived here all my life, however it's not the same and that is true everywhere. I will miss certain things and now I get to experience seasons which I have never been able to do. I don't mind a little weather. I do like the green trees all year round. I like driving on highways where for the most part all you see is green trees along the highway and maybe an occasional billboard. Bottom line to each his or her own. For the Kings, I do believe these players think about business and family first and LA is not a draw anymore. We can end this now. Sincerely.

 

[symbology]

The "margin" being the weather tax!

VS the Earthquake and Wildfire taxes. Sadly, the LA area is due for a good shaker.

 

[kingnut]

VS the Earthquake and Wildfire taxes. Sadly, the LA area is due for a good shaker.

Yeah, I was living in whittier when the big one hit there.

Tornadoes in mid west or hurricanes or, earthquakes

 

[hokiecat]

Great article on The Athletic this morning about the no state taxes advantage. Why the NHL won't fix the 'no-tax states' issue any time soon: Duhatschek notebook

FWIW, I 100% agree with the anonymous exec that all the lousy GMs are using taxes as a smokescreen for their mediocre performances. Tampa built its team through the draft, Vegas fleeced everyone in the expansion draft, and Florida did an amazing job of trading and rehabbing failed players like OEL.

 

[Drum4Pigs]

Great article on The Athletic this morning about the no state taxes advantage. Why the NHL won't fix the 'no-tax states' issue any time soon: Duhatschek notebook

FWIW, I 100% agree with the anonymous exec that all the lousy GMs are using taxes as a smokescreen for their mediocre performances. Tampa built its team through the draft, Vegas fleeced everyone in the expansion draft, and Florida did an amazing job of trading and rehabbing failed players like OEL.

Just read that article and thought of this thread. Here's a link:

Why the NHL won't fix the 'no-tax states' issue any time soon: Duhatschek notebook

 

[emsomaso]

Great article on The Athletic this morning about the no state taxes advantage. Why the NHL won't fix the 'no-tax states' issue any time soon: Duhatschek notebook

FWIW, I 100% agree with the anonymous exec that all the lousy GMs are using taxes as a smokescreen for their mediocre performances. Tampa built its team through the draft, Vegas fleeced everyone in the expansion draft, and Florida did an amazing job of trading and rehabbing failed players like OEL.

Yes, Tampa built the foundation of the team through the draft, Vegas did a great job during the expansion draft and Florida was great turning waiver picks and rejects into good players. But no matter what, the opportunity to pay $2-3MM less each year for their star players for sure helped them…

I have never said that this is the only reason, but to pretend that the no income taxes advantage had no part of their success is, at least to me, a bit silly!