Monday, April 19, 2004
Runs, Hits and Taxes
Toronto Blue Jays president Paul Godfrey wants the province of Ontario to follow the example of 20 U.S. states, several cities, Alberta and Puerto Rico by adopting a "jock tax" on the income earned by visiting athletes while working in the province. And he proposes a twist: the money raised by the tax should be used to subsidize the Blue Jays.
As Rick Westhead writes in the Toronto Star, California currently takes in $70 million/year from the "jock tax," and the Expos' "home games" in Puerto Rico are generating $7 million/year from the 12% income tax levied by the commonwealth on the players from both clubs. These taxes are an administrative nightmare for players and their accountants, especially since different jurisdictions use different methods to compute the tax. Most states allow residents a credit on their state income taxes for "jock taxes" payable elsewhere, but Florida, Illinois, and Nevada don't.
Godfrey notes that Alberta currently imposes an income tax surcharge on players on the Calgary Flames and Edmonton Oilers, with the proceeds returned to the clubs. He wants Ontario to do the same, but to tax players on the home and visiting teams for the benefit of the local owners. Godfrey describes his proposal as "a common-sense approach to a complex problem" and "a way of aiding sports teams without being a burden on taxpayers." I suspect many players will use different terms to describe it...
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Toronto Blue Jays president Paul Godfrey wants the province of Ontario to follow the example of 20 U.S. states, several cities, Alberta and Puerto Rico by adopting a "jock tax" on the income earned by visiting athletes while working in the province. And he proposes a twist: the money raised by the tax should be used to subsidize the Blue Jays.
As Rick Westhead writes in the Toronto Star, California currently takes in $70 million/year from the "jock tax," and the Expos' "home games" in Puerto Rico are generating $7 million/year from the 12% income tax levied by the commonwealth on the players from both clubs. These taxes are an administrative nightmare for players and their accountants, especially since different jurisdictions use different methods to compute the tax. Most states allow residents a credit on their state income taxes for "jock taxes" payable elsewhere, but Florida, Illinois, and Nevada don't.
Godfrey notes that Alberta currently imposes an income tax surcharge on players on the Calgary Flames and Edmonton Oilers, with the proceeds returned to the clubs. He wants Ontario to do the same, but to tax players on the home and visiting teams for the benefit of the local owners. Godfrey describes his proposal as "a common-sense approach to a complex problem" and "a way of aiding sports teams without being a burden on taxpayers." I suspect many players will use different terms to describe it...
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