11/23/12, "
Tax increases could factor in MLB negotiations," Ronald Blum, AP
"
Team
executives and agents wandered into the Agave Sunset lounge at the
resort where the general managers' meetings were held in Indian Wells,
Calif. Four of the six flat-screen televisions were showing election
coverage, with the other two turned to sports.
President
Barack Obama's victory over
Mitt Romney
was of as much interest to baseball's money men as the game scores,
given the millions of dollars routinely guaranteed in player contracts
these days.
As
free agents negotiate deals this offseason, tax policy is an area that
comes up along with the usual issues. Some players are wrangling for as
much money as they can get before the end of the year to avoid a take
hike in 2013.
"Front-loading
would make sense if at all possible as
tax rates will definitely go up
on January 1st on all high-income taxpayers," agent
Greg Genske said in an email. "The only question is HOW MUCH will the rates increase????"
This
much is known for now: Starting Jan. 1, there is an additional
- 0.9
percent Medicare tax on wages above $200,000 for individuals and $250,000 for married couples filing jointly
- under the federal Affordable
Care Act, a rise to 2.35 percent.
In
addition, the Bush tax cuts are scheduled to expire at the end of the
year, which could
raise the highest marginal federal tax rate from 35
percent to 39.6 percent —
although a deal between
Obama and Congress could change that....
With
baseball contracts worth as much as $275 million (
Alex Rodriguez) and the major league minimum $480,000, tax policy affects every player who spends most of the season in the big leagues.
All-Star shortstop
Jose Reyes, who has a $10 million salary next year, was traded from the Miami Marlins to the
Toronto Blue Jays. While Florida has no state income tax, Reyes remains a New York resident from his days with the
Mets
and had high taxes to begin with.
- Ontario's provincial tax rises to
11.16 percent — on top of a Canadian federal level as high as 29
percent.
Among
states with big league teams, income tax rates go as high as
- 10.3
percent in California and 8.82 percent in New York.
At the other end,
Florida, Texas and Washington have no state income tax. The top
- rate in
the District of Columbia is 8.95 percent.
"I like ours; we're a no-tax state,"
Seattle Mariners general manager
Jack Zdurienck
said.
"When we sit down with players, that's a huge benefit. I think
any player out there that has an opportunity to play in a no-tax state
gets benefits, enormous benefits. We hope that weighs in our favor."
According to an analysis done by a tax lawyer on the staff of agent
Scott Boras,
a player with a $10 million salary and average deductions
who plays in
Florida and is a resident of that state will see his taxes rise
- from
$3.45 million this year to $4.09 million next year
under current law. If
traded to the Blue Jays, that player's 2013 tax would rise to $4.27
million. And if dealt
- to a California team,
- the tax would go up to $4.4
million.
By
moving money from salary into signing bonuses, players can sometimes
lower their state tax bills. Shifting money into December this year
could reduce federal taxes.
"Tax
measures are going to be discussed, but change most likely carries
compromise on both sides," Boras said. "One thing is clear based on the
nation's ballot totals: Many Americans are split on this subject."
In the end, most free agents choose teams based on where they want to play, not on lowering the tax cut on their income.
"It's a factor, maybe even a small factor," agent
Craig Landis
said. "If there's 50 variables, you can now make it a 51st. It's not
usually going to be the drive, but it's something to consider."
And for teams, only the big spenders need worry."... via Drudge
Team
executives and agents wandered into the Agave Sunset lounge at the
resort where the general managers' meetings were held in Indian Wells,
Calif. Four of the six flat-screen televisions were showing election
coverage, with the other two turned to sports.
President
Barack Obama's victory over Mitt Romney was of as much interest to
baseball's money men as the game scores, given the millions of dollars
routinely guaranteed in player contracts these days.
As
free agents negotiate deals this offseason, tax policy is an area that
comes up along with the usual issues. Some players are wrangling for as
much money as they can get before the end of the year to avoid a take
hike in 2013.
"Front-loading would make sense
if at all possible as tax rates will definitely go up on January 1st on
all high-income taxpayers," agent Greg Genske said in an email. "The
only question is HOW MUCH will the rates increase????"
This
much is known for now: Starting Jan. 1, there is an additional 0.9
percent Medicare tax on wages above $200,000 for individuals and
$250,000 for married couples filing jointly under the federal Affordable
Care Act, a rise to 2.35 percent.
In addition,
the Bush tax cuts are scheduled to expire at the end of the year, which
could raise the highest marginal federal tax rate from 35 percent to
39.6 percent — although a deal between Obama and Congress could change
that.
Oakland Athletics general manager Billy
Beane figures agents will be on top of the changes — but the results of
negotiations about the so-called fiscal cliff are unpredictable.
Read more:
http://www.myfoxny.com/story/20169524/tax-increases-could-factor-in-mlb-negotiations#ixzz2D4aucbqt
Team
executives and agents wandered into the Agave Sunset lounge at the
resort where the general managers' meetings were held in Indian Wells,
Calif. Four of the six flat-screen televisions were showing election
coverage, with the other two turned to sports.
President
Barack Obama's victory over Mitt Romney was of as much interest to
baseball's money men as the game scores, given the millions of dollars
routinely guaranteed in player contracts these days.
As
free agents negotiate deals this offseason, tax policy is an area that
comes up along with the usual issues. Some players are wrangling for as
much money as they can get before the end of the year to avoid a take
hike in 2013.
"Front-loading would make sense
if at all possible as tax rates will definitely go up on January 1st on
all high-income taxpayers," agent Greg Genske said in an email. "The
only question is HOW MUCH will the rates increase????"
This
much is known for now: Starting Jan. 1, there is an additional 0.9
percent Medicare tax on wages above $200,000 for individuals and
$250,000 for married couples filing jointly under the federal Affordable
Care Act, a rise to 2.35 percent.
In addition,
the Bush tax cuts are scheduled to expire at the end of the year, which
could raise the highest marginal federal tax rate from 35 percent to
39.6 percent — although a deal between Obama and Congress could change
that.
Oakland Athletics general manager Billy
Beane figures agents will be on top of the changes — but the results of
negotiations about the so-called fiscal cliff are unpredictable.
Read more:
http://www.myfoxny.com/story/20169524/tax-increases-could-factor-in-mlb-negotiations#ixzz2D4aucbqt
Team
executives and agents wandered into the Agave Sunset lounge at the
resort where the general managers' meetings were held in Indian Wells,
Calif. Four of the six flat-screen televisions were showing election
coverage, with the other two turned to sports.
President
Barack Obama's victory over Mitt Romney was of as much interest to
baseball's money men as the game scores, given the millions of dollars
routinely guaranteed in player contracts these days.
As
free agents negotiate deals this offseason, tax policy is an area that
comes up along with the usual issues. Some players are wrangling for as
much money as they can get before the end of the year to avoid a take
hike in 2013.
"Front-loading would make sense
if at all possible as tax rates will definitely go up on January 1st on
all high-income taxpayers," agent Greg Genske said in an email. "The
only question is HOW MUCH will the rates increase????"
This
much is known for now: Starting Jan. 1, there is an additional 0.9
percent Medicare tax on wages above $200,000 for individuals and
$250,000 for married couples filing jointly under the federal Affordable
Care Act, a rise to 2.35 percent.
In addition,
the Bush tax cuts are scheduled to expire at the end of the year, which
could raise the highest marginal federal tax rate from 35 percent to
39.6 percent — although a deal between Obama and Congress could change
that.
Oakland Athletics general manager Billy
Beane figures agents will be on top of the changes — but the results of
negotiations about the so-called fiscal cliff are unpredictable.
Read more:
http://www.myfoxny.com/story/20169524/tax-increases-could-factor-in-mlb-negotiations#ixzz2D4aucbqt
Team
executives and agents wandered into the Agave Sunset lounge at the
resort where the general managers' meetings were held in Indian Wells,
Calif. Four of the six flat-screen televisions were showing election
coverage, with the other two turned to sports.
President
Barack Obama's victory over Mitt Romney was of as much interest to
baseball's money men as the game scores, given the millions of dollars
routinely guaranteed in player contracts these days.
As
free agents negotiate deals this offseason, tax policy is an area that
comes up along with the usual issues. Some players are wrangling for as
much money as they can get before the end of the year to avoid a take
hike in 2013.
"Front-loading would make sense
if at all possible as tax rates will definitely go up on January 1st on
all high-income taxpayers," agent Greg Genske said in an email. "The
only question is HOW MUCH will the rates increase????"
This
much is known for now: Starting Jan. 1, there is an additional 0.9
percent Medicare tax on wages above $200,000 for individuals and
$250,000 for married couples filing jointly under the federal Affordable
Care Act, a rise to 2.35 percent.
In addition,
the Bush tax cuts are scheduled to expire at the end of the year, which
could raise the highest marginal federal tax rate from 35 percent to
39.6 percent — although a deal between Obama and Congress could change
that.
Oakland Athletics general manager Billy
Beane figures agents will be on top of the changes — but the results of
negotiations about the so-called fiscal cliff are unpredictable.
Read more:
http://www.myfoxny.com/story/20169524/tax-increases-could-factor-in-mlb-negotiations#ixzz2D4aucbqt
Labels: MLB players affected by Obama tax increases
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