TFC 2021-2022 player/coach/GM off-season roster discussion

[Auzzy]

haha, it’s just a European thing. I remember my dad once questioning why Canada shows salaries in gross. I shrugged him off initially but now when I think about it, it is pretty stupid. For those fortunate enough to be making 100k a year which is something many strive for, the reality is that they’re only getting $72,916 net. What’s even more odd is that when we look at purchases we do the opposite and look at their net value as opposed to the gross. For instance we advertise houses at say $500k, but that doesn’t factor in the legal, transfer and tax costs associated. So in essence we overestimate our income and underestimate our purchases.

Someone please pull me out of this wormhole.

I really hope this conversation doesn't restart, because it isn't that simple. It's just not worth getting into. A bit harder to do on a $100k gross salary, but on a $200k or higher gross salary there's a bunch of things people and their accountants do so that they're paying far less than %30 average tax on their income in Canada. Also I can say for Germany, people personally talk about net ("Netto") about their own salary, but not so much about a job that's just posted: then you often talk about gross ("Brutto"). Reason: it's up to personal circumstances. In addition to income taxes and deductions, that's due to health insurance for example, which is paid by both employee and employer in Germany, and is also deducted from the gross salary to arrive at net. Although health insurance is generally a % of income in Germany, in most cases you have a huge variety of choices which massively affect how much you'll be paying. (Various public & non-profit/group health insurances; plus private insurance options that range from very expensive gold-plated to dirt-cheap with high yearly deductible.) There simply isn't a set "net" salary for a given job.

Italy seems to be a special case, where it's advantageous for employers to directly pay the income tax on behalf of their employees, so that there can be a reasonable idea of a set "net" salary. But that's all I know about the Italian tax system. (Do they not have other up-front salary deductions that affect net salary; or deductible expenses that impact the effective tax rate paid?)

Too confusing and not worth it for a footy forum! And this won't be the first or last time that this forum and many other places get confused about how much salary is actually paid to a player for a year.

[Mr. Inbetween]

EDIT...

OP by Auzzy...
Italy seems to be a special case, where it's advantageous for employers to directly pay the income tax on behalf of their employees, so that there can be a reasonable idea of a set "net" salary. But that's all I know about the Italian tax system. (Do they not have other up-front salary deductions that affect net salary; or deductible expenses that impact the effective tax rate paid?)

...Likely Italian 'Lavoro Nero' counter measure; EU entry origins. Incentivize less out source-contract work-self employment-individual income reporting v more organizational/business reporting. Business does the admin hard work, gets a break, gov't knows what individual earns. NA conspiracy nutters call it the Debit Card.