Ohtani's deal prompts state controller to ask for a cap on deferred payments
California Controller Malia M. Cohen wants Congress to change the tax code to cap deferred payments, a change that could ensure the state is owed more money from Shohei Ohtani.
Cohen made the request four weeks after the twoway star and the Los Angeles Dodgers agreed to a record $700 million, 10year contract that contains $680 million in deferred payments due from 2034-43.
If Ohtani is not living in California at the time he receives the deferred money, he potentially could avoid what currently is the state's 13.3% income tax and 1.1% payroll tax for State Disability Insurance.
“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 in a statement Monday.
“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.”
Ohtani's deal has the potential to save $98 million in state tax, according to the California Center for Jobs and the Economy, a public benefit corporation that aims to provide information on job creation and economic trends.
CUBS AGREE TO CONTRACT WITH JAPANESE LEFTHANDER IMANAGA >>
The Chicago Cubs agreed to a contract with Japanese left-hander Shata Imanaga in their first major offseason roster move.
A person familiar with the agreement confirmed it to the Associated Press on condition of anonymity because it was pending a physical. Terms of the deal weren't disclosed.
The 30-year-old Imanaga, who got the win for Japan in last year's World Baseball Classic final against the United States, has until 5 p.m. EST on Thursday to reach an agreement with a major league team.
Imanaga was 7-4 with a
2.80 ERA in 22 starts this year for the Yokohama BayStars of Japan's Central League.
He struck out 174 and walked 24 in 148 innings. MARLINS IN AGREEMENT TO HIRE BALKOVEC AS DIRECTOR OF PLAYER DEVELOPMENT >> The Miami Marlins are in agreement with Yankees minor league manager Rachel Balkovec to become their director of player development, according to a person familiar with the deal.
The person confirmed an MLB.com report of Balkovec's hiring to The Associated Press on Tuesday on condition of anonymity because the team had not announced
the deal. Balkovec finished her second season as manager at Class A Tampa in September. She debuted with the team in April 2022 with a win as the first woman to manage a Major League Baseball affiliate.
Before that, Balkovec was the first woman to serve as a full-time minor league strength and conditioning coach, then the first to be a full-time hitting coach in the minors with the Yankees.
Pro basketball SPOELSTRA, HEAT AGREE ON EXTENSION >>
Erik Spoelstra and the Miami Heat have agreed on a contract
extension, ensuring that the longest-tenured coach in franchise history only keeps adding to his team records for many years to come.
Spoelstra and the team agreed on an eight-year extension, according to a person with knowledge of the agreement. Spoelstra's current deal expires after this season.
Spoelstra is in his 16th season as head coach in Miami and his 29th season overall with the franchise. He started in the video room and eventually becoming a scout, an assistant coach and then Pat Riley's hand-picked successor as head coach in April 2008.