Edited Sep. 8, 2023 at 10:30 a.m.
Quoting: ChiHawk
It's been widely reported that he was unwilling to entertain offers in Canada.
You'd be surprised apparently how many players won't play in Canada. Most importantly, the tax penalty, especially when they agreed to a contract based on taxes where the team they negotiated with is based; in this case, Illinois income tax is under 5%.
Claiming that it's widely reported seems unsubstantiated. I've personally never come across any credible sources indicating that Seth Jones is unwilling to play for a Canadian team. In order to clarify this matter, could you kindly share the source of this information if you have one?
For anyone curious about the actual tax numbers...
Chicago, Illinois:
City Income Tax (Chicago) is 2.25% for all taxpayers: $9,500,000 * 0.0225 =
$213,750
State Income Tax (Illinois) is 4.95% for all taxpayers: $9,500,000 * 0.0495 =
$470,250
Federal Income Tax (U.S.) is progressive and ~37% for income over $523,600: ($9,500,000 - $523,600) * 0.37 + ($523,600 * 0.35) =
$3,436,190
Total Income Tax to play in Chicago = $470,250 + $213,750 + $3,436,190 =
$4,120,190
Toronto, Ontario:
Municipal Income Tax is 0% as Toronto does not have its own separate municipal income tax.
Provincial Income Tax for Ontario's is 20.63% for income over $220,000: ($9,500,000 - $220,000) * 0.2063 + ($220,000 * 0.1505) =
$1,896,585.50
Federal Income Tax in Canada is progressive and ~33% for income over $214,368: ($9,500,000 - $214,368) * 0.33 + ($214,368 * 0.15) =
$3,023,975
Total Income Tax to play in Toronto is Federal Income Tax + Provincial Income Tax = $3,023,975 + $1,896,585.50 =
$4,920,560.50
So the difference between Chicago and Toronto is $4,120,190-$4,920,560.50=
-$800,370.50
That amount can easily be offset with a smart accountant by putting it into certain investments, businesses, charities, etc.