Current:Home > ScamsShohei Ohtani’s Dodgers deal prompts California controller to ask Congress to cap deferred payments -RiskWatch
Shohei Ohtani’s Dodgers deal prompts California controller to ask Congress to cap deferred payments
View
Date:2025-04-14 21:42:50
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! (87)
Related
- Meet first time Grammy nominee Charley Crockett
- Cause of death for Christina Sandera, Clint Eastwood's girlfriend, is released
- Tropical Storm Debby is expected to send flooding to the Southeast. Here’s how much rain could fall
- UK prime minister talks of ‘standing army’ of police to deal with rioting across Britain
- What were Tom Selleck's juicy final 'Blue Bloods' words in Reagan family
- 2024 Olympics: Gymnast Carlos Yulo Wins Condo, Colonoscopies and Free Ramen for Life After Gold Medal
- Wayfair’s 60% off Bedding & Bath Sale Has Everything You Need for Your Dorm, Starting at $9
- Details on Zac Efron's Pool Incident Revealed
- Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
- Google illegally maintains monopoly over internet search, judge rules
Ranking
- Former Danish minister for Greenland discusses Trump's push to acquire island
- Why Katie Ledecky Initially Kept Her POTS Diagnosis Private
- Star Wars’ Daisy Ridley Shares She's Been Diagnosed With Graves’ Disease
- Before 'Cowboy Carter,' Ron Tarver spent 30 years photographing Black cowboys
- Sam Taylor
- Chappell Roan may have made history at Lollapalooza with 'biggest set of all time'
- The Stanley x LoveShackFancy Collection is Here: Elevate Your Sip Before These Tumblers Sell Out
- Suburban New York county bans wearing of masks to hide identity
Recommendation
Meta releases AI model to enhance Metaverse experience
'Billions' and 'David Makes Man' actor Akili McDowell, 21, charged with murder
Chappell Roan may have made history at Lollapalooza with 'biggest set of all time'
Florida attorney pleads guilty to bomb attempt outside Chinese embassy
Could Bill Belichick, Robert Kraft reunite? Maybe in Pro Football Hall of Fame's 2026 class
Haunting Secrets About The Sixth Sense You Won't Be Able to Unsee
Hurricane Debby: Photos show destruction, flooding in Florida caused by Category 1 storm
White Sox lose 21st straight game, tying AL record set by 1988 Baltimore Orioles, falling 5-1 to A’s