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Double TAX? Canada's Hidden Problem?

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  • 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?

  • #2
    Part of the problem with NBA players not wanting to go to Canada is that it is so damn cold.

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    • #3
      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.
      http://twitter.com/Liston

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      • #4
        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.
        The best Raptors discussion board is at Raptors Republic.

        Stephen Brotherston, Pro Bball Report

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        • #5
          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.
          The best Raptors discussion board is at Raptors Republic.

          Stephen Brotherston, Pro Bball Report

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          • #6
            who cares about the cold when you got brass rail saline titties rubbing on your face to keep you warm

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            • #7
              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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              • #8
                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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                • #9
                  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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                  • #10
                    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.
                    http://twitter.com/Liston

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                    • #11
                      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.
                      Avatar: Riverboat Coffee House 134 Yorkville Ave. billboard of upcoming entertainers - Circa 1960s

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                      • #12
                        The other "hidden problem" for NBA players is dealing with customs/border crossings...they absolutely dispise it.

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                        • #13
                          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%.
                          http://twitter.com/Liston

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                          • #14
                            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.
                            Avatar: Riverboat Coffee House 134 Yorkville Ave. billboard of upcoming entertainers - Circa 1960s

                            Memories some so sweet, indeed

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                            Quote from well known personality who led their high school team to a state championship.

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                            • #15
                              The two biggest problems the Raptors have is the snow the city has all year round and the misconceptions American have about the city.
                              Read my blog, The Picket Fence. Guaranteed to make you think or your money back!
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