Toronto Maple Leafs Get Some Horrible News Courtesy of Gary Bettman
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NHL commissioner Gary Bettman has been known for his disdain of Canadian teams, and a new decision threatens the Toronto Maple Leafs in a pretty bold way.
If you are a Toronto Maple Leafs fan, you know that a huge barrier to players signing in Canada is the tax system. The taxes here are higher, and it is why some players prefer to go to places with no state tax.
Having said that, there has always been a workaround. Teams with the financial ability to do so could simply pay out contracts in signing bonuses, which are typically riddled with tax savings.
However, a new CBA rule has completely changed the game, and as Forbes explains, Canadian teams could be put at a greater disadvantage.
Toronto Maple Leafs victims of new CBA rule
Essentially, a signing bonus can now only make up 60 percent of someone's entire NHL contract.
This means that a Canadian team like the Leafs can't try to work around the tax system as brazenly as they did before.
Under the old CBA, all of a player's contract could be comprised of signing bonuses except for the CBA mandated yearly minimum salary. That has changed. The new CBA limits bonuses to 60% of a contract.
Why does this matter?
The Canadian tax on signing bonuses for non-residents of Canada is limited to 15%, with the player then paying the balance owing at the prevailing tax rate in his home state in the United States. So while a player who claims to be a resident of a U.S. state pays taxes in both Canada and the U.S., the combined tax savings is significant, potentially saving the player millions of dollars over the term of the contract.
Why does this matter?
The Canadian tax on signing bonuses for non-residents of Canada is limited to 15%, with the player then paying the balance owing at the prevailing tax rate in his home state in the United States. So while a player who claims to be a resident of a U.S. state pays taxes in both Canada and the U.S., the combined tax savings is significant, potentially saving the player millions of dollars over the term of the contract.
The Toronto Maple Leafs haven't made a ton of signings this offseason, but this is mostly due to the fact that the market is thin.
Going forward, the team is expected to make some moves, but there is no telling whether or not those moves will come anytime soon.
As it stands, the Leafs are in the dark ages of the offseason, and fans are just hoping for something to happen sooner rather than later.
Whatever the case may be, Canadian teams have every right to be upset, as every year it feels like they become further away from competing for titles.
| POLL | ||
JUILLET 28 | 328 ANSWERS Toronto Maple Leafs Get Some Horrible News Courtesy of Gary Bettman Do you believe Gary Bettman is purposely trying to mess with teams like the Toronto Maple Leafs? | ||
| YES | 300 | 91.5 % |
| NO | 28 | 8.5 % |
| List of polls | ||
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