Shohei Ohtani’s unique contract is making waves outside of the sports world. California Controller Malia Cohen is now asking Congress to change the tax code by capping the amount of deferred payments an individual can obtain, according to Jonathan Lloyd at NBC Los Angeles.
“The absence of reasonable caps on deferral for the wealthiest individuals exacerbates income inequality and hinders the fair distribution of taxes,” Cohen wrote in a statement.
Cohen also argued that this change to the tax code would create additional revenue for various social initiatives.
California only receives its 13.3-percent income tax and 1.1-percent payroll tax on the deferred money if Ohtani is still living in the state when he receives it, saving him $98 million in taxes.
But the change isn’t without its downsides for California: As William McBride, vice president of federal tax policy at the Tax Foundation points out, high-earning athletes could avoid playing here altogether if their earnings would be significantly impacted.
About 50 percent of polled front office officials say that Yoshinobu Yamamoto will win the NL Rookie of the Year award, according to MLB.com’s Jonathan Mayo. Jackson Chourio of the Milwaukee Brewers, in second place, earned 17% of the vote.