Dustin Byfuglien's taxes could rise or fall by hundreds of thousands of dollars if he moves as a free agent.
REGINA, SK: Hoisting the Stanley Cup is the number one goal for every NHL player, but the game is also a business and the Canadian Taxpayers Federation (CTF) today released a report co-authored with Americans for Tax Reform (ATR) showing how personal income taxes impact the product on the ice. And that tax impact can play a role in other places such as local hospitals and businesses.
The report entitled Major Penalty for High Taxes is the third annual report the CTF and ATR have jointly released on income taxes on highly-skilled, highly-paid and highly-mobile individuals.
“Jets blueliner Tyler Myers will save $474,146 because he left the sky-high taxes in Buffalo and moved to Winnipeg,” said Todd MacKay, Prairie Director for the Canadian Taxpayers Federation. “But Dustin Byfuglien is a free agent at the end of the season and the tax factor cuts both ways for fans hoping he’ll stay in Winnipeg.”
Manitoba ranks in the middle of the pack when it comes to high-income tax rates. For example, if Byfuglien stays in Winnipeg and signs another contract for $6 million, he’ll pay a tax rate of 46.2 per cent for a total of nearly $2.7 million. However, if he signs in Montreal during the next off-season he will pay 54.5 per cent – nearly half a million more in taxes than he’s paying in Manitoba. If he signs as a free agent with the Florida Panthers, Tampa Bay Lightning, Dallas Stars or Nashville Predators, his tax rate would be 41.3 per cent – a move that would save him $294,704.
“Byfuglien looks good in a Jets jersey, but we all understand there’s more to pro hockey than how good your hockey card looks,” said MacKay. “There’s lots of locations that offer sunny weather and lower taxes than Winnipeg.”
Taxing high incomes comes at a cost for a province or state. In the salary-cap era, players in lower-tax markets such as Alberta or Florida get to take home more of their pay and that’s an edge for teams recruiting top talent. But low taxes aren’t just a draw in pro sports where the draft and other restrictions limit the choices players can make.
“Students graduating from the University of Manitoba as doctors or accountants can go anywhere in the world,” said MacKay. “Places that let the best and brightest take home more of their pay will have an advantage in staffing hospitals and growing businesses that create jobs.”
For a complete breakdown of the tax factor impacting every NHL team, the full report entitled Major Penalty for High Taxes is available here:
Todd MacKay, Prairie Director
