"California Controller Calls for Tax Code Equity Amid Shohei Ohtani's Contract Controversy"

California Controller Malia M. Cohen is urging Congress to cap deferred payments in high-earning contracts, specifically targeting Shohei Ohtani's $700 million, 10-year deal with the Los Angeles Dodgers. The proposed change aims to prevent Ohtani from potentially avoiding California state income taxes on the deferred amount by living outside the state when he receives the payments. Cohen argues that unlimited deferrals for the wealthiest individuals exacerbate income inequality and hinder fair tax distribution, and she believes introducing limits on deductions and exemptions for high-income earners promotes social responsibility and a more equitable tax system.