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bgr
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The govt hates to miss out on a dollar that they figure will line their pockets instead of ours.
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https://www.forbes.com/sites/robertwood/2024/01/11/california-seeks-tax-law-change-for-ohtani-700m-baseball-contract-pay/?sh=45e7dff4fe12
Ohtani’s $700 Million Contract Sparks California To Seek Tax Law Change
"But a change to get a piece of deferred pay deals like Ohtani’s would have to be made to federal tax law, not just California."
They may or not be successful in federal law changes. There arent any small market MLB teams theres just some that act like it. A couple are in a weird spot though losing their local TV contracts from the bankruptcy. In the long run it will probably end up benefiting the teams.
As far as Othani, there was probably some tax stuff there but more of it was about so they could sign other players wanting to win. Yamamoto was the big one having no differed money
If CA is successful Idont know how that would play out given that players make their salaries in the states their games are played in.
Fire AJ Preller
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The majority of major contracts have deferred money. Manny is still being paid from the Red Sox on deferred money as one example.
Deferred money is not being paid under the table and yes it is relevant that the state wouldnt be entitled to money earned in other states
Fire AJ Preller
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Theres nothing different between a team in Boston, NY, FL, MD, DC etc deferring money in a contract for any sport which has all happened.
Griffey had over 50 million deferred with the Reds. Scherzer had over 100 million deferred from the Nationals, Kevin Garnett has been making 5 million a year from the Celtics with deferred money for 7 years.
Deferred money is deferred money no matter the amount which is a pay cut to the player since the money will be worth less. Teams love deferring money in contracts
Its been happening for decades. The Othani situation is unique he makes so much money off the field so they could sign Yamamoto to 300 mil with no deferred money and the Othani deferred money counts less against the cap
Fire AJ Preller
I can't see Congress changing the law. It just isn't going to happen.
Changing the law would basically also mean that with capital gains on stocks, taxes would have to be paid at the time of the gains, even if the stock wasn't sold. Rather than waiting to pay taxes in the year the stock was sold at a profit. The American public tolerates a lot these days, but they wouldn't tolerate this.
Forget about it, it's a dead issue.
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Yes it's not the same, but it's still taxation on income which hasn't been received yet.
The government could technically then even tax you on gains in value on your collectibles which you have not even sold.
I paid about 50% of my income back to the government in income, sales, property taxes, fees etc and lived paycheck to paycheck for almost 50 years.
Really GREAT to see multi millionaires get to live like kings and pay next to nothing in taxes.
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I'm not going to go back and forth on tax law. Suffice to say I'd rather see Ohtani keep the money than California. Perhaps at that time he may decide to live in America. Perhaps he remains in Japan but buys a second home in America. Perhaps he starts a business in America.
There are numerous examples of how society benefits, meaning we all benefit, by allowing folks to keep more of the money they earn, and yes that includes millionaires, rather than handing it over to a wasteful spending government.
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https://www.cbssports.com/mlb/news/shohei-ohtani-interpreter-scandal-money-allegedly-stolen-was-funneled-through-casinos-per-report/
Well thus it's looking more and more like Ohtani is completely innocent.