top of page

States Want Tax Reform As Ohtani’s Deal Deferrals Stir Controversy

Apr 15, 2024

It’s Tax Day across the U.S., the deadline by which individuals and organizations must report their financial state for 2023 to the Internal Revenue Service and state officials. But some California legislators are already thinking ahead to future tax years, with Dodgers superstar Shohei Ohtani at the center of their focus.

Ohtani’s unprecedented $680 million in deferrals in his record-setting $700 million contract, to be paid out between 2034 and ’43, have inspired a legislative bill calling on the U.S. Congress to establish a “reasonable cap on deferred compensation,” in turn allowing individual states to capture more tax revenue. The California Center for Jobs and the Economy has calculated that Ohtani could save up to $98 million in state taxes by moving to another state or out of the country, and some in the Golden State want at least a meaningful portion of that money.

Source: Front Office Sports

bottom of page