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10-10-2009, 04:31 PM
  #206
Brooklyn Ranger
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Join Date: Feb 2002
Location: Brooklyn, of course
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Quote:
Originally Posted by jniklast View Post
So it's right for NHL hockey players (who mostly are millionaires) to not pay any taxes while the average American has to? I sure wouldn't want to live in such a country....
Of course NHL players pay US taxes (as well as state and sometimes local taxes) when they play in the United States. If an American player plays abroad, regardlss of what that country does (and they usually are taxed unless they're playing in Russia), they still have to pay taxes to the United States on their worldwide income. If they are working abroad, they may qualify for an income exclusion (last year $87.600, but only if you live at least 330 days outside of the USA) and may also qualify to receive a credit for foreign taxes paid. And, unless you become a permanant resident of a foreign country, you may have to pay state (and depending where) local taxes as well. And don't forget that deductions and exemptions phase out at higher income levels, leaving more income subject to tax.

Oh, and taxes rates are significantly higher in European countries too.

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