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Thread: Double TAX? Canada's Hidden Problem?

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    Default Double TAX? Canada's Hidden Problem?

    Could somebody post a link or clairify the Double Tax NBA Players pay in Canada?

    Did the HST affect it?
    The HST really simplifies our Taxes in Canada. Each level, Manufactures, Distributors, Suppliers Etc... are NOW able to Write-Off the Tax as a Credit against their expenses. Now, Taxes are NOT passed along at each level SAVING the Consumer a compounded Tax charged at each level inflating the cost to the consumer. Consumers might not see the positive impact of the SEEMLY increased HST Tax but Businesses with *OVERHEAD* will.

    This will lower costs to companies and make our country more competitive & LESS confusing to the world market. Which should attract more businesses to open shop here OR invest $$$ in the existing business. Which SHOULD mean more jobs, increase in pay and more competition that will level prices out.

    Does anyone know how this will affect the NBA salaries?

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    Raptors Republic Rookie Karl Marx's Avatar
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    Part of the problem with NBA players not wanting to go to Canada is that it is so damn cold.

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    Quote PapiJulio wrote: View Post
    Could somebody post a link or clairify the Double Tax NBA Players pay in Canada?
    I think he means both federal and provincial tax. However, he may forget that most states impose a tax as well:
    http://en.wikipedia.org/wiki/State_income_tax
    New York City also has their own tax.

    What some fail to understand is the Canadian Federal portion tops out at 29%, whereas the U.S. Federal potion goes up to 35%
    The Ontario tax is generally higher than the state taxes. Earlier research on this topic suggested that the total personal income tax burden in Toronto is on par with California and New York. The differences are grossly exaggerated by players like McGrady and O'Neal.

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    Quote Karl Marx wrote: View Post
    Part of the problem with NBA players not wanting to go to Canada is that it is so damn cold.
    You mean like in Detroit, Cleveland, Chicago, Milwaukee, Minnesota (now that's cold & further North), Salt Lake City, Denver - yeah, that must be it - Toronto is just so much colder than other US cities.
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    Many US Cities impose a city income tax. Plus even players who live in a zero income tax state like Florida have to pay State income taxes for away games in jurisdictions with income tax. Nothing is ever simple when discussing income tax.

    Tax treaties between the US & Canada eliminate "double" taxation. But even tax experts would have trouble explaining all the nuances of paying taxes in the US.
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    who cares about the cold when you got brass rail saline titties rubbing on your face to keep you warm

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    Quote Karl Marx wrote: View Post
    Part of the problem with NBA players not wanting to go to Canada is that it is so damn cold.
    I didn't know that the games were played outside.

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    The double taxation involves a rule by the IRS whereby American citizens are taxed on their worldwide income. Therefore the US citizens pay taxes in the US in addition to paying federal taxes to Canada. I believe that there is a tax credit available for the amount of foreign taxes paid based on a tax treaty and you are allowed to deduct living expenses.

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    Quote brothersteve wrote: View Post
    You mean like in Detroit, Cleveland, Chicago, Milwaukee, Minnesota (now that's cold & further North), Salt Lake City, Denver - yeah, that must be it - Toronto is just so much colder than other US cities.
    Don't forget new York and Boston. They are smilar to TO.

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    Quote Karl Marx wrote: View Post
    Part of the problem with NBA players not wanting to go to Canada is that it is so damn cold.
    Are temperatures in Chicago, New York, New Jersey, Boston and Milwaukee that materially different?

    Players don't want to play here because we haven't built a culture of winning. That is all.

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    Quote Liston wrote: View Post
    I think he means both federal and provincial tax. However, he may forget that most states impose a tax as well:
    http://en.wikipedia.org/wiki/State_income_tax
    New York City also has their own tax.

    What some fail to understand is the Canadian Federal portion tops out at 29%, whereas the U.S. Federal potion goes up to 35%
    The Ontario tax is generally higher than the state taxes. Earlier research on this topic suggested that the total personal income tax burden in Toronto is on par with California and New York. The differences are grossly exaggerated by players like McGrady and O'Neal.
    All American citizens regardless of where they work in the Universe need to legally pay Federal Income Tax. Its the law. They also need to pay the Income Tax imposed in the country that they work in. Unless there is a tax treaty between the U.S. and that country the American citizen who works outside of American will have to pay double Income tax.

    In some cases where there is a tax treaty in place the IRS allows the deduction of foreign Income Taxes as a credit against the U.S. Federal Income Tax. In that case if the allowable credit is 100% of the foreign Income Tax than there is no double Income Tax. If the allowable credit is less than 100% of the Foreign Income Tax then there some amount of double taxation on Income for an American who works outside of America.
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    The other "hidden problem" for NBA players is dealing with customs/border crossings...they absolutely dispise it.

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    Quote Buddahfan wrote: View Post
    In some cases where there is a tax treaty in place the IRS allows the deduction of foreign Income Taxes as a credit against the U.S. Federal Income Tax. In that case if the allowable credit is 100% of the foreign Income Tax than there is no double Income Tax. If the allowable credit is less than 100% of the Foreign Income Tax then there some amount of double taxation on Income for an American who works outside of America.
    Canada and the U.S. have a treaty, but I'm unsure if it's 100%.

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    Quote Raptoronto wrote: View Post
    The other "hidden problem" for NBA players is dealing with customs/border crossings...they absolutely dispise it.
    It can't be near as bad as the boarding planes security problems caused by the TSA in America that people now have to go through, like the fondling of passengers private parts by groping TSA employees etc.

    Having said that I doubt that professional athletes traveling with the team have to deal with these security problems.
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    The two biggest problems the Raptors have is the snow the city has all year round and the misconceptions American have about the city.
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    Quote heinz57 wrote: View Post
    who cares about the cold when you got brass rail saline titties rubbing on your face to keep you warm
    hahahah have you tried caddy's? hahaha

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    Quote Tim W. wrote: View Post
    The two biggest problems the Raptors have is the snow the city has all year round and the misconceptions American have about the city.
    Snow in the summer in Toronto?

    Not when I used to go there.

    Has there been a global cooling affecting Ontario/Toronto?

    I do agree that there is snow in Toronto for a good part of the NBA season, however having grown up in Buffalo I can tell you that the snow in Toronto is not that bad.

    I think the wind chill factor in Toronto during most of the basketball season is a lot bigger negative factor than the snow.
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    Quote heinz57 wrote: View Post
    who cares about the cold when you got brass rail saline titties rubbing on your face to keep you warm
    If it takes cold weather for you to get a women's titties brass rail hard and rubbing in your face, you might have a problem. Just saying
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    i think the main reasons are taxes, the US vs. Canadian dollar and basketball market.

    Every US state has taxes but i dont think it goes as high as 13%.

    Most NBA players have families, if theyre going to sign a multi-year contract here, they will be taking their families and i dont think they like that fact that they will be spending theyre US dollars here since products here are more expensive compared to the states.

    People keep saying that the basketball market here in Canada is huge, i dont think thats true. You may see some kids wearing jerseys here in Toronto, but in other cities, i dont think youll see as much. Popularity of the sport is what makes it marketable. There maybe a huge market, but basketball hasnt tapped into that yet. If youre a bigtime player, you want endorsements.

    But when the team starts winning, this will all be transparent.

    But to win, we need bigtime players.

    Chicken or the egg.

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    Quote tbihis wrote: View Post
    i think the main reasons are taxes, the US vs. Canadian dollar and basketball market.

    Every US state has taxes but i dont think it goes as high as 13%.

    Most NBA players have families, if theyre going to sign a multi-year contract here, they will be taking their families and i dont think they like that fact that they will be spending theyre US dollars here since products here are more expensive compared to the states.

    People keep saying that the basketball market here in Canada is huge, i dont think thats true. You may see some kids wearing jerseys here in Toronto, but in other cities, i dont think youll see as much. Popularity of the sport is what makes it marketable. There maybe a huge market, but basketball hasnt tapped into that yet. If youre a bigtime player, you want endorsements.

    But when the team starts winning, this will all be transparent.

    But to win, we need bigtime players.

    Chicken or the egg.
    You can build through the draft like Portland and OK have done and now the Clippers are doing.
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    “As a captain, I played furiously. I drew a lot of fouls, but I brought everything I had to every practice and to every game. I left everything on the court because I simply wanted the team to win”
    Quote from well known personality who led their high school team to a state championship.

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