Shohei Ohtani’s Dodgers deal prompts California controller to ask Congress to cap deferred payments

2024-12-26 09:33:52 source:lotradecoin features category:Markets

SACRAMENTO, Calif. (AP) — California Controller Malia M. Cohen wants Congress to change the tax code to cap deferred payments, a change that could ensure the state is owed more money from Shohei Ohtani.

Cohen made the request four weeks after the two-way star and the Los Angeles Dodgers agreed to a record $700 million, 10-year contract that contains $680 million in deferred payments due from 2034-43. If Ohtani is not living in California at the time he receives the deferred money, he potentially could avoid what currently is the state’s 13.3% income tax and 1.1% payroll tax for State Disability Insurance.

“The current tax system allows for unlimited deferrals for those fortunate enough to be in the highest tax brackets, creating a significant imbalance in the tax structure,” Cohen said in a statement Monday. “The absence of reasonable caps on deferral for the wealthiest individuals exacerbates income inequality and hinders the fair distribution of taxes. I would urge Congress to take immediate and decisive action to rectify this imbalance.”

Cohen’s statement was first reported by the Los Angeles Times.

Other news Blue Jays GM Ross Atkins expresses regret Shohei Ohtani turned down Toronto Yoshinobu Yamamoto joins the Los Angeles Dodgers, vows to compete for championships alongside Ohtani Shohei Ohtani gives a Porsche to Joe Kelly’s wife for his No. 17 with the Dodgers

Ohtani’s deal has the potential to save $98 million in state tax, according to the California Center for Jobs and the Economy, a public benefit corporation that aims to provide information on job creation and economic trends.

Cohen became controller last year. She was president of San Francisco’s Board of Supervisors in 2018 and ’19.

“Introducing limits on deductions and exemptions for high-income earners promotes social responsibility and contributes to a tax system that is just and beneficial for all,” she said. “This action would not only create a more equitable tax system, but also generate additional revenue that can be directed towards addressing pressing important social issues and fostering economic stability.”

___

AP MLB: https://apnews.com/MLB

More:Markets

Recommend

A Malibu wildfire prompts evacuation orders and warnings for 20,000, including Dick Van Dyke, Cher

MALIBU, Calif. (AP) — Weather conditions were forecasted to improve this week in Southern California

Ulta 24-Hour Flash Deal: Dry and Style Your Hair at the Same Time and Save 50% On a Revlon Heated Brush

We love these products, and we hope you do too. E! has affiliate relationships, so we may get a smal

Stimulus Bill Is Laden With Climate Provisions, Including a Phasedown of Chemical Super-Pollutants

In what Senate leaders are hailing as the single biggest victory in the fight against climate change