{"id":443613,"date":"2024-01-11T19:11:31","date_gmt":"2024-01-11T19:11:31","guid":{"rendered":"https:\/\/yebscore.com\/news\/?p=443613"},"modified":"2024-01-11T19:11:31","modified_gmt":"2024-01-11T19:11:31","slug":"shohei-ohtanis-contract-with-dodgers-might-bring-a-change-in-the-californian-tax-law","status":"publish","type":"post","link":"https:\/\/yebscore.com\/news\/shohei-ohtanis-contract-with-dodgers-might-bring-a-change-in-the-californian-tax-law\/","title":{"rendered":"Shohei Ohtani&#8217;s Contract With Dodgers Might Bring A Change In The Californian Tax Law\u00a0"},"content":{"rendered":"<p>Congress should take &#8220;immediate and decisive action&#8221; to limit deferred income for higher incomes, according to California&#8217;s controller, Shohei Ohtani&#8217;s inked a $700 million contract with the <a href=\"https:\/\/www.mlb.com\/dodgers\">Los Angeles Dodgers<\/a> just a month ago.<\/p>\n<h2>Shohei Ohtani&#8217;s Contract With Dodgers Might Bring A Change In The Californian Tax Law<\/h2>\n<p>With a 10-year deferral of $680 million, the record-breaking contract signed by the Japanese pitcher has sparked concerns regarding future state taxability, particularly in the event that Ohtani decides to leave California. The highest tax rate in California for 2024 is 14.4%, plus a 1.1% payroll levy.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">This is getting so funny.<\/p>\n<p>The San Francisco Giants fan who wants to go after Shohei Ohtani\u2019s deferrals for taxes had her business license suspended for \u201cfailure to file\u201d a tax return and \u201cfailure to pay\u201d taxes in March 2021.<\/p>\n<p>We see you, <a href=\"https:\/\/twitter.com\/MaliaCohen?ref_src=twsrc%5Etfw\">@MaliaCohen<\/a> <a href=\"https:\/\/twitter.com\/CAController?ref_src=twsrc%5Etfw\">@CAController<\/a>! <a href=\"https:\/\/t.co\/D7TdY7v2pU\">pic.twitter.com\/D7TdY7v2pU<\/a><\/p>\n<p>&mdash; Chris Guzman \ud83c\udfc6 (@christopherguz) <a href=\"https:\/\/twitter.com\/christopherguz\/status\/1744879459466141819?ref_src=twsrc%5Etfw\">January 10, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>\u201cThe 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,\u201d California State Controller Malia Cohen said in a statement Monday regarding Ohtani\u2019s deal.<\/p>\n<p>Cohen argues that unrestricted tax deferrals for the wealthiest people are a contributing factor to the disparities in income distribution and that these imbalances should be addressed.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Shohei Ohtani\u2019s Dodgers contract scrutinized as possible tax loophole <a href=\"https:\/\/t.co\/45XCLqusX9\">https:\/\/t.co\/45XCLqusX9<\/a><\/p>\n<p>&mdash; Sports Illustrated (@SInow) <a href=\"https:\/\/twitter.com\/SInow\/status\/1744879267048038830?ref_src=twsrc%5Etfw\">January 10, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&#8220;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.&#8221;<\/p>\n<p>Ohtani may not live in California after his Dodger career ends in 2034, so part of his deal plan includes possible tax benefits.<\/p>\n<p>An estimate from the California Center for Jobs and the Economy suggests that Ohtani might save $98 million over the course of his contract by deferring $68 million a year for ten years. The precise details of Ohtani&#8217;s contract are unclear, and the estimate is based on a number of assumptions.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Shohei Ohtani\u2019s Dodgers deal includes $680 million in deferred compensation. California thinks that sounds like a tax dodge. <a href=\"https:\/\/t.co\/09dvCrujwn\">https:\/\/t.co\/09dvCrujwn<\/a><\/p>\n<p>&mdash; FORTUNE (@FortuneMagazine) <a href=\"https:\/\/twitter.com\/FortuneMagazine\/status\/1745224720260202617?ref_src=twsrc%5Etfw\">January 10, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Cohen&#8217;s proposal is to recalculate Ohtani&#8217;s contract&#8217;s tax treatment. Rather than tax him on the $2 million salary per year, the plan calls for capping deferrals and then charging a larger proportion of income as taxes.<\/p>\n<p>This action reflects larger concerns about tax justice and income inequality, as well as perceived loopholes and possible revenue losses related with large-scale contract deferrals.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Japanese player Shohei Otani&#39;s plan to defer his $700M pay check while playing for the LA Dodgers raises some eyebrows<br \/>If he moves out of California then the state would lose the equivalent of 1.78 Million average tax filers<\/p>\n<p>Dubbed to English with Dubbah<a href=\"https:\/\/twitter.com\/hashtag\/ShoheiOhtani?src=hash&amp;ref_src=twsrc%5Etfw\">#ShoheiOhtani<\/a>\u2026 <a href=\"https:\/\/t.co\/ScAje4moOR\">https:\/\/t.co\/ScAje4moOR<\/a> <a href=\"https:\/\/t.co\/tfYAd8QHik\">pic.twitter.com\/tfYAd8QHik<\/a><\/p>\n<p>&mdash; Dubbah &#8211; Dub your videos (@dubbahco) <a href=\"https:\/\/twitter.com\/dubbahco\/status\/1744851028544016467?ref_src=twsrc%5Etfw\">January 9, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>California has a history of modifying laws to its advantage, sometimes even retroactively (as demonstrated by the 2023 statute that taxes specific trusts retroactively). However, changes to federal tax law\u2014not simply California law\u2014would be necessary to allow for deferred compensation arrangements similar to those of Ohtani.<\/p>\n<p>It&#8217;s debatable how much retirement income is appropriate, but comparing current and delayed salary is one approach.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Shohei Ohtani&#39;s $700 million contract sparks concern about taxes on deferred income for high earners <a href=\"https:\/\/t.co\/YEwRolt6Gb\">https:\/\/t.co\/YEwRolt6Gb<\/a><\/p>\n<p>&mdash; CNBC (@CNBC) <a href=\"https:\/\/twitter.com\/CNBC\/status\/1744827501577142733?ref_src=twsrc%5Etfw\">January 9, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<div data-hveid=\"CGEQAQ\">\n<div class=\"dnXCYb\" tabindex=\"0\" role=\"button\" aria-controls=\"_PDygZfi2F7Cz4-EPm4qK2Ao_62\" aria-expanded=\"true\">\n<h3 class=\"JlqpRe\"><span class=\"JCzEY ZwRhJd\"><span class=\"CSkcDe\">How many wins does Ohtani have?<\/span><\/span><\/h3>\n<div class=\"L3Ezfd\" data-ved=\"2ahUKEwj4xIH5g9aDAxWw2TgGHRuFAqsQuk56BAhhEAI\">Career Regular Season<\/div>\n<\/div>\n<\/div>\n<div id=\"_PDygZfi2F7Cz4-EPm4qK2Ao_62\" class=\"bCOlv\" data-ved=\"2ahUKEwj4xIH5g9aDAxWw2TgGHRuFAqsQ7NUEegQIYRAE\">\n<div class=\"IZE3Td\">\n<div class=\"t0bRye r2fjmd\" data-hveid=\"CGEQBQ\" data-ved=\"2ahUKEwj4xIH5g9aDAxWw2TgGHRuFAqsQu04oAHoECGEQBQ\">\n<div id=\"PDygZfi2F7Cz4-EPm4qK2Ao__130\">\n<div class=\"wDYxhc\" data-md=\"135\">\n<div class=\"Crs1tb\" data-hveid=\"CFkQAA\">\n<div class=\"webanswers-webanswers_table__webanswers-table\">\n<table>\n<tbody>\n<tr class=\"ztXv9\">\n<th>G<\/th>\n<th>W-L<\/th>\n<th>IP<\/th>\n<\/tr>\n<tr>\n<td>86<\/td>\n<td><b>38-19<\/b><\/td>\n<td><b>481.2<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Is Ohtani a Hall of Famer?<\/h3>\n<p>Not only is this one of the greatest players we&#8217;ve seen, but it&#8217;s also among the most significant. Ohtani is already a Hall of Famer because, as we can already say, his tale of baseball in the twenty-first century would be incomplete without him.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">BREAKING: California Controller Cracks the Whip, Urges Congress for a New Climate Bill to Tax Ohtani&#39;s \u201cAir High-Fives\u201d, All in the Name of Combating Potential Tax Loss from Shohei Ohtani\u2019s Dodgers Deal.<a href=\"https:\/\/twitter.com\/hashtag\/ShoheiOhtani?src=hash&amp;ref_src=twsrc%5Etfw\">#ShoheiOhtani<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/dodgers?src=hash&amp;ref_src=twsrc%5Etfw\">#dodgers<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/HighFivesAllAround?src=hash&amp;ref_src=twsrc%5Etfw\">#HighFivesAllAround<\/a> <a href=\"https:\/\/t.co\/6YoeK1jav1\">pic.twitter.com\/6YoeK1jav1<\/a><\/p>\n<p>&mdash; Truly Artificial News (@TrulyArti) <a href=\"https:\/\/twitter.com\/TrulyArti\/status\/1744956237538644225?ref_src=twsrc%5Etfw\">January 10, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<p><strong>FOR MORE SPORTS COVERAGE-\u00a0<\/strong><\/p>\n<p><a title=\"Bill Belichick Net Worth: How Much Did He Make With Patriots In 24 Years?\" href=\"https:\/\/yebscore.com\/news\/bill-belichick-net-worth-how-much-did-he-make-with-patriots-in-24-years\/\" rel=\"bookmark\">Bill Belichick Net Worth: How Much Did He Make With Patriots In 24 Years?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Congress should take &#8220;immediate and decisive action&#8221; to limit deferred income for higher incomes, according to California&#8217;s controller, Shohei Ohtani&#8217;s inked a $700 million contract with the Los Angeles Dodgers just a month ago. Shohei Ohtani&#8217;s Contract With Dodgers Might Bring A Change In The Californian Tax Law With a 10-year deferral of $680 million, [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":442375,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[141,54],"tags":[15867,2221,4450,21011,6366,21009,21010],"class_list":["post-443613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-los-angeles-dodgers","category-mlb","tag-mlb-2024","tag-mlb-news","tag-shohei-ohtani-contract","tag-shohei-ohtani-dodgers-contract","tag-shohei-ohtani-news","tag-shohei-ohtani-tax-law","tag-shohei-ohtani-tax-law-change"],"acf":[],"_links":{"self":[{"href":"https:\/\/yebscore.com\/news\/wp-json\/wp\/v2\/posts\/443613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yebscore.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yebscore.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yebscore.com\/news\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/yebscore.com\/news\/wp-json\/wp\/v2\/comments?post=443613"}],"version-history":[{"count":0,"href":"https:\/\/yebscore.com\/news\/wp-json\/wp\/v2\/posts\/443613\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yebscore.com\/news\/wp-json\/wp\/v2\/media\/442375"}],"wp:attachment":[{"href":"https:\/\/yebscore.com\/news\/wp-json\/wp\/v2\/media?parent=443613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yebscore.com\/news\/wp-json\/wp\/v2\/categories?post=443613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yebscore.com\/news\/wp-json\/wp\/v2\/tags?post=443613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}