Emergency Alert: Shohei Ohtani’s Contract Crisis! State Controller Pleads with Congress for Urgent Intervention on Deferrals – Is this the End of a Baseball Legend’s Legacy?

The California state controller urged Congress on Monday to close a loophole that might spare Shohei Ohtani from paying tens of millions in state taxes. The Dodgers recently signed Ohtani to a 10-year, $700-million contract, with $680 million deferred until after the deal concludes in 2033.

During this period, Ohtani could potentially return to Japan or relocate outside California, thereby avoiding state taxes on the deferred amount. This could result in an estimated $98 million loss in tax revenue for the state, as per the California Center for Jobs and the Economy.

State Controller Malia Cohen argued that the existing tax system permits unlimited deferrals for individuals in the highest tax brackets, creating a significant imbalance. She emphasized the need for reasonable caps on deferrals for high-income individuals to address income inequality and ensure a fair distribution of taxes. Cohen urged Congress to take swift action to rectify this imbalance, introducing limits on deductions and exemptions for high earners to promote social responsibility and contribute to a more equitable and beneficial tax system. Such changes, she noted, would generate additional revenue that could be directed towards addressing crucial social issues and fostering economic stability.

The plea for Congressional intervention in this matter follows a series of high-profile signings by the Dodgers, including Shohei Ohtani, Yoshinobu Yamamoto, Tyler Glasnow, and Teoscar Hernández, prompting fans and the state controller to seek MLB and legislative involvement, respectively.