Sports Taxation News

"California Controller Pushes for Tax Code Change Over Shohei Ohtani's $700 Million Dodgers Contract"

Shohei Ohtani's $700 million contract with the Los Angeles Dodgers, which defers $680 million over 10 years, has sparked concerns about the tax implications of deferred income for high earners in California. The state's controller is urging Congress to limit deferred income for higher earners, citing concerns about income inequality and tax structure imbalance. However, experts note that the issue may stem from a federal law preventing states from taxing nonresident retirement income, and Congress has not prioritized restrictions on deferred income.