Holding Court is a series by retired Rye City Court Judge Joe Latwin. Latwin retired from the court in December 2022 after thirteen years of service to the City.
What topics do you want addressed by Judge Latwin? Tell us.
By Joe Latwin
It’s no coincidence that the Rangers haven’t won the Stanley Cup in 31 years. Part of the blame for this failure falls on Albany.
New York has high income taxes. These income taxes create big disparities in the amount of net pay hockey players receive. They choose to play in low or no tax States to keep more of their salaries. These high-priced players going to low tax States make teams from low or no tax States are more successful. Teams from low or no tax States have won four of the last five Stanley Cups. Florida Panthers and Tampa Bay Lightning, and Las Vegas Nevada (Golden Knights) have all won recently. The Colorado Avalanche is the exception. In this years’ Stanley Cup, you have the Florida Panthers and the Dallas Stars still alive in the Conference finals.
Why do taxes matter? Free agents choose low or no tax States rather than come to New York. Recently a player got a $69 million dollar contract with the Florida Panthers. If he had gone to a New York or California team, he could have paid up to $12 million in State taxes instead of nothing. Also, players will block trades to teams in high tax States limiting trade options for general managers in high tax States. Making it worse, Canadian teams have high Provincial taxes and unfavorable currency exchange rates. Maybe that is why no Canadian team has won the Stanley Cup since 1993.
Governor Kathy Hochul may not be a great goalie, but she is sure stopping the Rangers (and the Buffalo Sabres) from being competitive in the market for top players. To be competitive in the NHL you need top players. To get top players, you need to pay them competitive salaries. For a salary to State tax rates. Of course, this works both ways. If top players don’t sign with New York teams, their salaries don’t get taxed in New York reducing New York’s tax receipts. If the New York teams don’t get top players, fans will be less likely to go to games and the team’s revenues and New York’s tax receipts will drop.
It’s time to not only drop the puck, but to drop the taxes too. Do you want to wait another 30 years to win another Stanley Cup? Do you want to pay more taxes? LGR.
