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11-15-2003, 04:41 AM
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Originally Posted by Tom_Benjamin
What happens to the tax money that is collected? It has to be shared, doesn't it? Or does it go to charity? LOL.
Never said that there weren't common elements to luxury tax and revenue sharing, I just said that they were different. A luxury tax is a tax, and therefore detterent, on payroll expenditures. It forces a drag on spending. Revenue sharing is a tax on revenues, and forces a drag on earning. They are two very different items. In fact, a revenue sharing system would not have to be approved by the NHLPA through a CBA, as it doesn't suppress salaries at all, while a luxury tax does. That in itself, is indicative that they are two completely different things.

Originally Posted by Tom_Benjamin
I think you are all being far too optimistic about a settlement. There is a fundamental philosophical disagreement that is not going to go away. The players made what appears to be a generous opening offer but they are not budging one inch on the philosophical issue.
But they have budged on the philosophical issue. They have introduced the concept of a luxury tax into the negotiations. They are saying that they are open to putting in a system that will have a downward pressure on salaries. Now that they have crossed that mark, the issue will become what type of "drag" on salary will be introduced (i.e. cap, tax or something else altogether) and how severe it will be.

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