SACRAMENTO-. The California Comptroller Malia M. Cohenwants Congress to reform the tax code to establish a cap on deferred changesa change that would give more money to the state from the agreement that Shohei Ohtani firm.
Cohen made the request four weeks after Ohtani and the Los Angeles Dodgers They reached an unprecedented agreement for 10 years and $700 million, which contains 680 million in deferred payments to cover from 2034 to 43.
If Ohtani does not reside in California at the time he receives the deferred money, he could avoid the income tax, which is currently 13.3% in the state, and the payroll tax, which is 1.1% for Disability Insurance.
“The current tax system allows unlimited deferral of payments for those fortunate enough to be in the highest tax brackets, creating a significant imbalance in the tax structure,” Cohen said in a statement. “The lack of reasonable caps on deferred payments for the wealthiest individuals exacerbates income inequality and obstructs the fair distribution of taxes. “I would urge Congress to take immediate and decisive action to correct this imbalance.”
The Los Angeles Times was the first outlet to report Cohen’s statement.
Ohtani’s deal has the potential to save $98 million in state taxes, according to the California Job Center and Economy, a public benefit corporation that seeks to provide information on job creation and trends. economic.
Cohen took over as comptroller last year. He chaired the San Francisco Board of Supervisors in 2018 and 19.
“Putting limits on deductions and exemptions for those who earn the most income promotes social responsibility and contributes to a tax system that is fair and beneficial for everyone,” he commented. “This action would not only create a more equitable tax system, but would generate additional revenue that can be directed to address important social issues and promote economic stability.”
Source: AP
