Canadian-based NHL teams have not won the Stanley Cup since 1993, and the Carolina Hurricanes' victory in June 2026 extends that drought to 33 years. According to columnist Jay Goldberg, high taxes are a key factor in this unprecedented failure, as they deter top talent from signing with Canadian teams.
Tax rates and player decisions
A recent study highlights that take-home pay, influenced by top marginal tax rates, affects where star players choose to play. For a player earning $750,000—a low NHL salary—the tax rate ranges from 31.27% in states like Texas or Florida (no state income tax) to 48.57% in Quebec. This difference reduces take-home pay by about $130,000. For a $10-million contract, the tax gap exceeds $1 million.
Goldberg notes that seven of the 32 NHL teams are Canadian, yet none have won the Cup in over three decades. While bad luck plays a role, he argues that difficulty attracting top talent due to tax disadvantages is a significant contributor.
Broader economic impact
The issue extends beyond hockey. Doctors, professors, inventors, and other high-income professionals are similarly drawn to lower-tax jurisdictions. Goldberg warns that Canada faces a "brain drain" as educated professionals move to the U.S. for higher after-tax income. He cites former prime minister Justin Trudeau's introduction of a 33% federal tax bracket for incomes over $200,000 (up from 29%) as a policy that worsened the problem. Canada's top marginal rate now exceeds the U.S. federal top rate, and many U.S. states have no income tax.
To reverse this trend, Goldberg urges Prime Minister Mark Carney's government to repeal the additional tax bracket. He argues that while taxing the rich is politically popular, it damages the economy by encouraging high earners—who already pay the most taxes—to leave the country.
Call for tax reform
Goldberg concludes that Canada must lower marginal tax rates across all sectors to remain competitive. "If Canada wants to attract and keep top talent—be it in sports, medicine or academia—the nation’s taxation policies must be addressed," he writes. Until then, Canadian teams and industries will continue to lag in securing elite performers.
