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Yankee Pitcher Will Lose Half His Salary To Taxes

From Americans For Tax Reform:

Yankees Pitcher To Lose Over Half of $155 Million Contract to Taxes

By Justin Sykes | Thursday, January 23, 2014

As reported by ESPN, the New York Yankees have signed Masahiro Tanaka to a 7-year contract worth $155 million, earning an estimated $22.1 million per year. According to ESPN, Tanaka’s contract is the largest ever for an international free agent and the fifth-largest deal for a pitcher. However sweet this $155 million dollar deal seems, the reality is that Tanaka will lose almost $90 million over the 7-year life of his contract with the Yankees.

In addition to the Yankees, Tanaka was also being courted by the Arizona Diamondbacks and the Chicago Cubs. Unlike New York City, the cities of Phoenix and Chicago do not impose a city income tax. Had Tanaka chosen a contract with the Diamondbacks or the Cubs, he would have saved almost $12 million over the life of his contract. Instead, Tanaka chose New York, where the state and local rates are some of the highest in the country. By choosing to sign with the Yankees, Tanaka automatically forfeited almost $12 million in taxes that would have been saved had he signed with the Cubs or Diamondbacks.

Wonder if anyone told him that? Of course, playing in  New York also opens the door for more product endorsement contracts.

Tanaka will pay a combined marginal income tax rate of 56.1 percent – over half of his contract. For New York state and local taxes alone he will lose an estimated $2,811,257 a year. The combined marginal income tax rate Tanaka will pay is comprised of the federal, state and local tax rates, plus the Medicare payroll tax…

The sweetness of signing a $155 million contract to play baseball for one of the leagues most renowned teams, the New York Yankees, is only made bitter by the fact Tanaka will have to settle for receiving only $68 million (less than half) of the $155 million contract due to the heavy federal and state tax burdens.

Welcome to the US, New York State and New York City, Mr. Tanaka. Now pay your taxes and keep your mouth shut if you are a conservative.

This article was posted by Steve Gilbert on Friday, January 24th, 2014. Comments are currently closed.

10 Responses to “Yankee Pitcher Will Lose Half His Salary To Taxes”

  1. Did you know when visiting NBA, NFL, baseball, NHL etc athletes play a game in NYC the State of New York sends them a tax bill for what they ‘earned’ while in their Great State?

    I use the term loosely, of course. Calling New York a great state is like praising Hillary Clinton for her youthful defense of honesty ..

  2. canary

    What’s that compared to what he’d make in his home country Japan? Could the players strike and play in NJ or do they charge a jock tax too.

    Too ease the pain, I guess the player could pretend he’s not paid for any mistakes.
    It sounds a little better than the average American who looks at it as working 6 months a year and not getting paid.

    I suggest professional teams buy their own field and make it a non-profit organization promoting
    sports.
    Once a week the players can bring troubled youth to their private field and play football, eat food, and sing songs. For that matter they could even say the Lords Prayer.

  3. For $12 million he could have flown to New York every weekend if he lived and worked anywhere else.

    SERIOUSLY, WHAT IS THE THRILL OF NEW YORK? I’ve been there, it’s cool, I like it, it’s fun, but it’s not worth living under oppression. If you are so A.D.D. that you need the city to constantly entertain you, I think you have a mental problem.

    New Yorkers are not “worldly” they are the most closed-minded people in America, as they never leave the confines of their existence, and they don’t want to. They are the Lord of the Flies-type mentality. They develop their own language, ideas, culture, and it seems reasonable to them. You transplant them to any other place, and they will whine about boredom, the lack of this or that service, scoff at the behavior and values of their new host city, look around for the New York Times to get “grounded” again. They are pathetic catered babies, and anyone who is worth their salt should not live and pay taxes there as it is an oppressive society in a multitude of ways.

    • captstubby

      good one mithrandir,can i borrow this to be included in some later project?

    • Rusty Shackleford

      This is nothing new, really, Mith. Though NYC has perhaps the most glaring example of it, I’ve noticed it about Chicagoans, Pittsburghers, Los Angleans and, pretty much every lifelong city-dweller there is.

      It’s known as provincialism and many have written about it, to include the great Mark Twain. The people who live in flyover country or who are primarily rural, enjoy it because it’s open, the smaller towns, the FREEDOM to go and do as they like and though they are aware of a lack of services, they don’t mind and actually prefer doing for themselves or even doing without.

      I rural SC where I live now, people are emigrating from the big socialist enclave known as Charlotte, NC and there are many from other cities who move here as well. I see them all at the lawnmower shop where I hang out on my days off when I’m not otherwise engaged in a project. They complain about the lack of sidewalks, streetlights, pizza delivery, trash pickup, etc. My question, which I keep to myself is always, “Then why did you move here, moron?”. Instead I just look at them and nod my head knowingly. They think I’m in agreement with them when I do so when in reality I’m just acknowledging their inability to survive in a place where you count on yourself more for those things that you used to demand from others.

      And it is a demand. It often doesn’t take long before they get involved in local government and then the stop lights start popping up, sidewalks, streetlights and laws upon laws that curtail and destroy freedom. Yet no one I talk to thinks it’s “better”.

      It’s known as “urban sprawl” where city ideas infect the country-folk and result in making everyone unhappy. I’m an hour away from the outskirts of that city and I hate driving into work but also understand that the city is the economic center to which I am shackled. I have no real problem with that other than I get ridiculed at times for my “lack of sophistication”.

      I have often wondered if the world and people will remain in existence long enough to cover the world with suburbia.

    • @captstubby Borrow it, but state with the clause, “A wise man once said…”

      @Rusty Shackleford Well said. I for one have seen and experienced literally DOZENS of cases where city folk come in and do the types of things you stated. -Create all kinds of burdensome ordinances when none were needed before, and of course the taxes go up to pay for all the manicured parks (which weren’t needed) new sidewalks (which people were totally fine with the old cracked ones). Complain about animal noises and odors when they moved into area zoned as AGRICULTURAL!

      I happen to think your 4th paragraph may also pertain to western societies going into other countries (Iraq/Afghanistan for examples) with the thought that western government, courts, and “improvements” are exactly what those people need. In fact, I think this is exactly why they hate America, because the snooty bourgeoisie, who know better than everyone, else come in and take over. I saw people with NO government services on t.v., from Mongolia. They had their family and yaks, goats, horses, tents, and just their family, and they actually looked happier than Americans, full of angst, with their ipods, and are NEVER happy. A crazy curse to be sure.

      -Food for thought.

    • captstubby

      Suburgatory [of the words “suburban” and “purgatory”.]
      sitcom television series .
      The series follows George Altman, a single father who decides to get away from New York City to the suburbs so he can give his teenage daughter, Tessa, a better life. However, their move to the suburbs has the daughter wondering if they just entered the world of The Stepford Wives after they see how “perfect” their new locale is, right down to the neighbors who welcome them into the cul-de-sac.

      Wikipedia

      Parks and Recreation television series on NBC,
      in the fictional Indiana town we watch the comic antics of a “Green Acres” flyover community bumbling local politics .
      a SNL like sketch that never ends.
      (In Color).

      there are more, its just i never watched them.

    • Steve

      “New Yorkers are not “worldly” they are the most closed-minded people in America, as they never leave the confines of their existence, and they don’t want to.”

      While I agree with practically everything you say about NY-ers, Mith, there are (cough) some exceptions.

  4. captstubby

    these socialist locust invade the province,

    devour everything green ,thriving and living, than survey the carnage they always bring,

    move on to other targets of opportunity to continue the cycle once again.


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