The five Miami Marlins players headed to the Toronto Blue Jays [right: RHP Josh Johnson, LHP Mark Buehrle, SS Jose Reyes, Utility man Emilio Bonafacio, catcher John Buck] are going to one of the world's most cosmopolitan cities to play for a
team that figures to be far better than their old one. But for them, the
move also comes at a price: a steep tax hike.
Florida has no state income tax. Ontario, on the other hand, is about to
impose a new, higher tax rate on the rich. As a result, the trade will
cost the five players a combined $8.4 million in lost income, according
to an analysis by Robert Raiola, the sports and entertainment group
manager at Fazio, Mannuzza, Roche, Tankel and LaPilusa, a New
Jersey-based tax, accounting and advisory firm. ...
For the purpose of these calculations, Raiola assumed 5% agent fees;
that 43% of players' income would be subject to Canadian taxes
(subtracting road games and spring training); a 49.53% combined tax rate
for Canada and Ontario; a 40.5% U.S. tax rate; and assumed the players
have established residency in Florida with the Marlins. Raiola also factored in a partial foreign tax credit that the players
can use on their U.S. returns, along with so-called "jock taxes," in
which some states require visiting athletes to pay state income tax for
each game they play there.