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Business & Economics

Athletes find new way to avoid taxes

Reason Magazine
Summary
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78% Informative

Shohei Ohtani and Frank Vatrano signed deals with the Anaheim Ducks to defer income from 2034 through 2043 .

California has a top marginal income tax rate of 13.3 percent , plus there's the top federal rate of 37 percent .

If he doesn't live in California during that decade , he could save $90 million and $100 million .

The NFL 's Raiders moved from California to Nevada , as the MLB 's Athletics are attempting to do.

NHL deputy commissioner Bill Daly : "There are just too many variables to really control" MLB 's Hembre: Base salary caps on expected posttax salary instead of pretax salary should mitigate it.

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