--- Birgir Runolfsson <[EMAIL PROTECTED]> wrote:
> But that makes the player indifferent between playing
> for the team that values him at $1,000,000 and the one that values him at
> $ 100,001, and therfore there is no certainty that the resource (player)
> will be allocated to its most valued use.

If the tax is $899,999, this implies that the player was already getting
paid $1 million.  The tax will not make the player leave. 
Another team will not offer $100,001 because the premise was that the next
best opportunity was $100,000.

Fred Foldvary

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