"Just a way to get more tax money" - MLB fans aim jibe at California controller after her outcry on Shohei Ohtani's Dodgers contract
Shohei Ohtani’s record-breaking contract with the Los Angeles Dodgers has stirred concerns in California, prompting State Controller Malia M. Cohen to advocate for congressional intervention.
The LA Dodgers recently inked a historic 10-year, $700 million deal with Ohtani, who opted to defer $680 million until after the contract concludes in 2033.
Cohen highlighted a potential loophole that could enable Ohtani to avoid paying tens of millions in California taxes. If, by the time of the contract’s expiration, Ohtani decides to return to Japan or relocate outside of California, he might escape state taxes on the deferred amount. This raises concerns about a potential loss of an estimated $98 million in tax revenue for the state, as calculated by the California Center of Jobs and the Economy.
However, fans had plenty to say about Cohen and her concerns on X/Twitter:
"Just a way to get more tax money." - Posted one fan.
"She’s a Giants fan." - Joked another user.
Malia Cohen believes the state should implement caps for high-income individuals
In response to this loophole, Controller Malia Cohen is urging Congress to address the issue by implementing reasonable caps on deferrals for high-income individuals. Cohen argued that the current tax system, allowing unlimited deferrals for those in the highest tax brackets, contributes to income inequality and disrupts the fair distribution of taxes. She emphasized the need for immediate and decisive action to rectify this imbalance.
Cohen believes that introducing limits on deductions and exemptions for high-income earners promotes social responsibility and contributes to a more just and beneficial tax system. Such measures, she contends, would not only create a fairer tax structure but also generate additional revenue that could be directed toward addressing pressing social issues and fostering economic stability.
As discussions surrounding Shohei Ohtani’s contract unfold, the state controller’s call for congressional intervention adds a unique dimension to the ongoing conversation about the financial implications of high-profile sports contracts and their impact on tax structures.