Most National Hockey League free agents moved to teams in states or provinces with lower taxes in the 2014 offseason, which saved them a combined $8 million, according to a new study published jointly by Americans for Tax Reform and the Canadian Taxpayers Federation.
“Injuries can damage your favorite sports team,” Grover Norquist, president of ATR, said in a statement. “So can high taxes in your state or province.”
The study analyzed NHL salary payments and income tax rates for players to demonstrate the true cost tax rates have on so-called labor mobility. It found that 57 percent of 123 free agents went to teams with lower taxes, costing the rejected states or provinces $7,951,784 in lost tax revenue.
In terms of taxes, U.S. states are generally less attractive than Canada, according to the study. Players in Alberta paid less in federal and provincial taxes combined than players in U.S. states without an income tax. Players for the Los Angeles Kings paid the highest amount of taxes — $27.8 million to the feds and $8.5 million to California.
In the past two years, 21 of the 23 American teams fell in the rankings of best places to play.
“NHL players are just one example of highly skilled workers who have a choice of where to work,” CTF Federal Director Aaron Wudrick said in a statement. “The same principles apply far beyond professional athletes, but also for doctors, engineers, and CEOs of major companies.”
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