Posted on 01/09/2024 2:36:32 PM PST by chrisinoc
Congress should narrow a loophole that could spare Shohei Ohtani from paying tens of millions in California taxes, the state controller said Monday.
The Dodgers last month signed Ohtani to a 10-year, $700-million contract, with Ohtani deferring $680 million until after the contract expires in 2033.
By that time, Ohtani could have returned to Japan or moved elsewhere outside California, where he might not be liable for state taxes on the deferrals. That could cost the state an estimated $98 million in tax revenue, according to the California Center for Jobs and the Economy.
(Excerpt) Read more at latimes.com ...
Classic!
It will cost California $98 million in tax revenue?
California must think the money belongs to them. Not receiving money is treated as an expense in the same way it would cost California $98 million to build a park or a road.
Any tax money paid will cost Shohei Ohtani because the money belongs to him.
Smart.
If my calculations are correct based on this year’s budget, Otani’s taxes would run the state for 2 hours and 46 minutes.
All governments think all of your money belongs to them. How many times have you heard some bureaucrat say “we can’t afford to spend money on a tax cut”?
CA will have to kidnap the guy and not allow him to leave the state without paying all future taxes in advance.
He might want to leave the state now and never come back for home or other CA games—while he still has the chance!
Those crazy leftists make up the rules as they go along—never expect them to play fair.
Lol.
Sure sounds like California wants a “bill of attainder”. IOW, they are seeking legislation that targets a single individual. Of course, they will attempt to involve others to make the attempt seem “fair”.
So what, now California wants to tax people on their FUTURE earnings? That’s pretty crazy. This is no different than someone with investment income from capital gains. Such gains are taxed when realized, which might well occur when the person lives elsewhere. Run your state better and make it a more attractive place to live (and consider lower taxes), and maybe people like Ohtani would stay.
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