California State Controller Malia Cohen is calling for a congressional investigation into Dodgers’ star Shohei Ohtani’s contract deferrals.
Last month, Ohtani signed a record-breaking ten-year, 700-million-dollar contract with the Dodgers. But, he is deferring 680-million-dollars of his salary until after the contract expires in 2033. That means, if he were to move out of the state before then, he could avoid paying millions of dollars in taxes.
Cohen is calling for a cap on unlimited deferrals for California residents in the highest tax bracket. She says the loophole is contributing to income inequality and interfering with the fair distribution of taxes.