Ohtani's Record-Breaking Contract Sparks Tax Debate

California State Controller Calls for Tax Code Changes to Prevent Potential $98M Tax Avoidance

Shohei Ohtani's record-breaking $700 million contract with the Los Angeles Dodgers, which defers $680 million until 2034, could potentially save him $98 million in California state tax if he is not living in the state when the payments kick in.
California State Controller Malia M. Cohen has called this potential tax avoidance unfair and has urged Congress to take action to rectify this imbalance in the tax system.
Cohen suggests that the current tax system allows for unlimited deferrals for those in the highest tax brackets, creating a significant imbalance in the tax structure.
Cohen's proposed solution is to introduce limits on deductions and exemptions for high-income earners, which she believes would promote social responsibility and contribute to a more equitable tax system.
Changes to the tax code could also generate additional revenue that could be used to address pressing social issues and foster economic stability.