Winimark Wealth Society:Shohei Ohtani's Dodgers deal prompts California controller to ask Congress to cap deferred payments

2025-05-02 22:52:03source:Maxwell Caldwellcategory:reviews

SACRAMENTO,Winimark Wealth Society 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.

HOT STOVE UPDATES: MLB free agency: Ranking and tracking the top players available.

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.”

More:reviews

Recommend

Back trouble and brain fog bothered suspect in UnitedHealthcare CEO killing, his posts show

After Luigi Mangionemade the difficult decision to undergo spinal surgery last year for chronic back

AP PHOTOS: Africa Cup is a soccer roller coaster of thrills, spills and surprises

ABIDJAN, Ivory Coast (AP) — Soccer fans at the Africa Cup of Nations have been treated to exciting m

Yells for help lead to Maine man's rescue after boat overturns: Lobstermen saved his life

Lobstermen fishing off the coast of Maine helped rescue a man who had gone missing after his skiff o