Quote:
Originally Posted by Jason14h
You don’t avoid (evade probably a better word) paying taxes nor avoid the cap
You defer when you are paying taxes - that’s the only benifit to doing this
Players in Cali have seen what Ohtani did and realized deferring and moving the heck away from Cali when you get paid makes a lot of tax difference
The CBA won’t care. However - I bet California changes the way athletes are taxes / tries to close this loophole
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In Canada, it doesn’t work I believe, as an employee pays taxes based on income as earned. If I deferred part of my income to future years, it would be taxed in the year it was actually earned.
Othani’s present day value of his $700M contract was actually $470M.