Current:Home > MyShohei Ohtani’s Dodgers deal prompts California controller to ask Congress to cap deferred payments -GrowthProspect
Shohei Ohtani’s Dodgers deal prompts California controller to ask Congress to cap deferred payments
View
Date:2025-04-12 19:55:31
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.
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
veryGood! (793)
Related
- The Grammy nominee you need to hear: Esperanza Spalding
- Finland, NATO’s newest member, will sign a defense pact with the United States
- 'Shameless': Reporters Without Borders rebukes X for claiming to support it
- US judge to weigh cattle industry request to halt Colorado wolf reintroduction
- North Carolina justices rule for restaurants in COVID
- The Republican leading the probe of Hunter Biden has his own shell company and complicated friends
- War crimes court upholds the conviction of a former Kosovo Liberation Army commander
- Buying a car? FTC reveals new CARS Rule to protect consumers from illegal dealership scams
- Trump's 'stop
- Academic arrested in Norway as a Moscow spy confirms his real, Russian name, officials say
Ranking
- Cincinnati Bengals quarterback Joe Burrow owns a $3 million Batmobile Tumbler
- Roger Goodell responds to criticism of NFL officials for Kadarius Toney penalty
- Amazon won’t have to pay hundreds of millions in back taxes after winning EU case
- Putin is taking questions from ordinary Russians along with journalists as his reelection bid begins
- Costco membership growth 'robust,' even amid fee increase: What to know about earnings release
- Who are the Von Erich brothers? What to know about 'The Iron Claw's devastating subject
- Retail sales up 0.3% in November, showing how Americans continue to spend
- Janet Yellen says the Trump administration’s China policies left the US more vulnerable
Recommendation
2025 'Doomsday Clock': This is how close we are to self
Buster Posey says San Francisco's perceived crime, drug problems an issue for free agents
Israel vows to fight on in Gaza despite deadly ambush and rising international pressure
Watch: Rare blonde raccoon a repeat visitor to Iowa backyard, owner names him Blondie
The White House is cracking down on overdraft fees
Amazon rift: Five things to know about the dispute between an Indigenous chief and Belgian filmmaker
Amazon, Target and Walmart to stop selling potentially deadly water beads marketed to kids
Shawn Johnson Gives Birth, Welcomes Baby No. 3 With Husband Andrew East