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We’ve seen this with teams in Canada in terms of the NHL. Players opt to sign with teams that have no-state tax so that they can keep more of their earnings. The Blue Jays are having this exact same problem in free agency. Nobody will take their money because the Canadian government is going to swipe it all anyway. I guess this shouldn’t be overly surprising but it turns out a big reason why Corbin Burnes signed with the D-Backs is because of Arizona taxes.
This was noted by several MLB insiders but per USA Today, the Giants and Blue Jays actually bid more for Burnes. He opted to sign with Arizona instead because of the tax rate and the fact that they offered an opt-out after two seasons.
Arizona Senate President Warren Petersen even commented on the situation.
The tax rates are pretty substantial. Everybody knows that California is fairly high at 14.4%. However, did you know that Toronto, Ontario is an astronomical 53.53%! Compare that to 2.5% in Arizona. It’s not even a conversation when you really see the numbers behind it.
The Blue Jays are screwed. I’m not sure why they won’t just be honest with themselves over this Vladdy Jr. thing. On a contract that big, you would have to be insane to take a contract in Canada over a similar offer in the states. They should just start the rebuild already and build the next great Jays team. Instead, they will lie to themselves and lose Vlad for basically nothing.
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