Congress should close a loophole that could prevent Shohei Ohtani from paying tens of millions in California taxes, the state comptroller said Monday.
Last month, the Dodgers signed Ohtani to a 10-year, $700 million contract, with Ohtani deferring $680 million until the contract expires in 2033.
By then, Ohtani could have returned to Japan or moved somewhere else outside of California, where he might not be responsible for state taxes on the deferrals. That could cost the state about $98 million in tax revenue, according to the California Center for Jobs and the Economy.
“The current tax system allows unlimited deferrals for those fortunate enough to be in the highest tax brackets, creating a significant imbalance in the tax structure,” Controller Malia Cohen said in a statement Monday. “The absence of reasonable limits on payment deferrals for the wealthiest people exacerbates income inequality and hinders the fair distribution of taxes. I would urge Congress to take immediate and decisive action to rectify this imbalance.
“Introducing limits on deductions and exemptions for high-income earners promotes social responsibility and contributes to a tax system that is fair and beneficial to all. This action would not only create a more equitable tax system, but would also generate additional revenue that can be used to address important pressing social issues and foster economic stability.”
If you had “fans calling for Major League Baseball to intervene” on your Hot Stove bingo card after the multi-million dollar winter of Ohtani, Yoshinobu Yamamoto, Tyler Glasnow and Teoscar Hernandez for the Dodgers, you win. But not surprising.
If you had “state comptroller calling for congressional intervention” on your Hot Stove bingo card, congratulations. You are a psychic.
