MLB agents ponder beating possible tax increase

AP ^ | November 5, 2008 | RONALD BLUM

[ConservativeStatement]

DANA POINT, Calif. (AP) — Looking ahead to an Obama administration, some baseball agents already are thinking about trying to beat a possible tax increase for their well-paid clients.

President-elect Barack Obama has proposed increasing the top federal income tax rate from 35 percent to 39.6 percent, where it was under the Clinton administration. If signing bonuses are paid before Jan. 1, they likely would be taxed at the current rate and would not be subject to any tax increase.

"It's something we'll consider," agent Craig Landis said Tuesday at the general managers' meetings. "Besides the federal issue, we have a state issue in some cases, anyway, where it's advantageous to take signing bonuses because of the state income tax. A Florida resident can take the signing bonus and not have to pay his team's state tax."

[ConservativeStatement]

Rush is discussing this matter now.

[NonValueAdded]

but why are they worried about chump change?

[edzo4]

time to bring back the cash discount, pay me with a check or credit card or ‘wink wink’ I can give you the cash discount

[KarlInOhio]

4.6% of a $10 million signing bonus is $460,000. Not exactly chump change to just demand a earlier pay date.

Owners on the other hand would be smart to postpone all expenses until a year with a higher business tax, like next year.

[Salgak]

Yet another reason to not support Major-League Baseball. Gee, these single-talent clowns want to beat a tax increase by having their pay raised, while the effective pay of the fans goes down. . .

Talk about killing the game. . .

[Right Wing Assault]

I’m sure they will work out an deal for film and recording artists where they are exempt. Tossing in athletes shouldn’t be too much of a stretch. It comes in handy to have famous people on your party’s side.

[Wolfie]

Certainly not chump change. But won’t affect their standard of living one bit.

We’re in a hole. Spending like mad and not about to stop. Let me repeat: Spending like mad and not about to stop. So who do you tax? The guy who’ll have to hold off on the fourth vaction home, or the guy who’ll have to skip braces for his kids?

[pepsionice]

Here’s my list of folks who will be exempted: professional sports folks, singers, actors, tire shop owners, horse racing players, casino owners, bar owners, trucking companies, hospitals, doctors, strip joint owners, candy shop owners, wrestlers, muffler repair guys, plumbers, roofers, and airline pilots. Thats the group for 2009...and we add 10,000 more professions by 2010.

[sharkhawk]

Actually most film stars and recording stars already get mucho tax breaks. They incorporate themselves and expense almost all personal expenses to the "corporation". House maid, expensed as the house is part of the corporation. Jet flights around the world, expensed as publicity expenses and so on. That is why so many "celeberties" don't care about taxes.

Also the movie studios are big on outsourcing work or demanding huge tax breaks to film in the states so they can pay the big star $20 million.

[vetvetdoug]

And likely the majority of MLB players were openly for Obama. Hypocrites.

[lacrew]

Well, I wonder how the fed gov will get money if the ultra rich hide it....

When You Aim at the Wealthy, You Hit the Middle Class Every Time