The Seattle Kraken may not have taken full advantage of being in a tax-free state up to this point. A new 'millionaires tax' is expected to come into effect in 2028, and it could affect their ability to attract and retain players.
You could certainly argue that the fact that Seattle is in a tax-free state hasn't benefited the Seattle Kraken during the first five years of their existence.
But any advantage it might have given them will be taken away as of Jan. 1, 2028, when a new 'millionaires tax' of 9.9 percent is imposed on people who make $1 million or more per year in household income. Lawmakers in Washington State voted Wednesday to enact the tax, which is waiting for the governor's signature. And it will be signed.
So what does that mean for the Kraken? Well, when a free agent is sitting down with the Kraken to discuss a contract, the team will no longer be able to use that nugget.
Taxes are one of a myriad of things players consider, but there is absolutely no doubt that it gives tax-free states an advantage. Just look at the Florida Panthers and Tampa Bay Lightning.
Will this inspire the NHL to provide some kind of remedy to mitigate the advantage tax-free states receive? Probably not.
Watch the video column up above for more.
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