HomeSportsCalifornia controller calls for tax code change after Ohtani deal
Don't Be Fooled by Gift Card Scams

California controller calls for tax code change after Ohtani deal

Shohei Ohtani’s record-breaking contract with the Los Angeles Dodgers is prompting California to call for a potential change in the tax code.

Ohtani signed a $700 million contract with the Dodgers in early December 2023, but a majority of that money will be paid years later. According to NBC Los Angeles, $680 million of his contract will be distributed in deferred payments due from 2034-43.

On Monday, California Controller Malia Cohen asked Congress to cap deferred payments, ABC 7 Los Angeles reports. She says it provides a loophole that will enable to Ohtani to pay less taxes.

“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, according to ABC 7 Los Angeles. “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.”

Data from the California Center for Jobs and the Economy suggests that Ohtani could save $98 million in taxes, NBC Los Angeles reports.

AsAmNews is published by the non-profit, Asian American Media Inc. Follow us on FacebookX, InstagramTikTok and YouTube. Please consider making a tax-deductible donation to support our efforts to produce diverse content about the AAPI communities. We are supported in part by funding provided by the State of California, administered by the California State Library in partnership with the California Department of Social Services and the California Commission on Asian and Pacific Islander American Affairs as part of the Stop the Hate program. To report a hate incident or hate crime and get support, go to CA vs Hate.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Worth the Time

Must Read

Regular Features


Discover more from AsAmNews

Subscribe now to keep reading and get access to the full archive.

Continue reading