The State of California Controller wants the US Congress to tax deferrals so that California could realize $98 million in revenue from Shohei Ohtani‘s contract:

“The current tax system allows for unlimited deferrals for those fortunate enough to be in the highest tax brackets, creating a significant imbalance in the tax structure,” Controller Malia Cohen said in a statement Monday. “The absence of reasonable caps on deferral for the wealthiest individuals exacerbates income inequality and hinders the fair distribution of taxes. I would urge Congress to take immediate and decisive action to rectify this imbalance.

“Introducing limits on deductions and exemptions for high-income earners promotes social responsibility and contributes to a tax system that is just and beneficial for all. This action would not only create a more equitable tax system, but also generate additional revenue that can be directed towards addressing pressing important social issues and fostering economic stability.”

LATimes.com

Do politicians ever think, “Maybe if our tax system wasn’t terrible, people wouldn’t be going to extremes to avoid them?”

Many years ago I happened to be speaking with Yao Ming’s agent. I asked him if he was able to get a good deal with the communist Chinese government on how much money Yao could keep. He told me Yao was doing better than if he played in California.