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There are a number of challenges for American citizens playing or investing in Canada. While travel is a significant challenge I think most participants would focus on pay differentials due to the high taxation policy of our neighbors to the north. Given the relatively high tax rates in Canada this disincentives both potential owners and certainly players.
1. Tax burden. Comparing Canada's relatively high income tax rates which are imposed on visiting athletes to lower tax rates and zero tax rates in many states in the United States create a disincentive for athletes to either play in Canada or be based in Canada.
"The difference in tax rates between Canada + province versus US + state income taxes make big difference. For example, an NBA player playing for the Toronto Raptors would pay Canadian and Ontario income taxes, which are much higher than, say someone playing for the Dallas Mavericks. Not only the income taxes higher, but the Canadian tax law also prohibits deducting employment expenses, such as agent fees.
Raptors players pay about 2/3 of their income in Canadian rates (home games and stays in Toronto during the season)."
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Do American Pro athletes have a financial disadvantage playing sports in Canada?
Answer (1 of 3): Yes. The difference in tax rates between Canada + province versus US + state income taxes make big difference. For example, an NBA player playing for the Toronto Raptors would pay Canadian and Ontario income taxes, which are much higher than, say someone playing for the Dallas Ma...www.quora.com
"Toronto is now the worst place to play in the NBA, with a gap of approximately 4% between teams with home games in cities with no state or city tax. "
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No Longer a Myth – American Athletes Pay More in Toronto
It's the time of year when we exchange dreams of wearing the uniform of our cherished Maple Leafs or Raptors, to dreams of wearing a suit and making big financial and personnel decisions for the teams. If you're like me, you have read all the rumours and speculate who we will trade for and who...www.mondaq.com
2. The continuing problem of flying commercial versus charter will be exacerbated with Canadian teams. Ownership of that Canadian team given current WNBA policy will have as you point out significantly more complexity in travel and certainly appreciably higher travel costs.
I hear you regarding taxes and investments. If MLSE is the group who ends up owning the franchise, that helps to negate the issues of investment as they're a Canadian group and have the experience to deal with these challenges.
Playing in Canada hasn't scared off quality NBA or NHL players from making Toronto their home. In some cases, their contracts are paid in USD to help deal with some of those challenges as well.
It's not easy, but it's possible. Only time will tell in the end.