Should Baseball Fans Join the Fiscal Cliff Discussion?

[JEFF9K]

Should baseball fans get in on the discussion? If the top marginal rate was raised to 91%, like in the prosperous 1950s, the top players would stop demanding contracts that are affordable only by the Yankees and a couple of other teams. This would mean that most baseball fans wouldn't have to see their favorite players leave when they become free agents. This could result in baseball again becoming our National Pastime!

[GP6971]

1. Sure.....why not?

Makes sense to me

[locks]

2. Home run

Good idea!

[malthaussen]

3. Well, that's ingenious.

Of course, the reverse would happen, as the players would want the biggest contracts possible to get as much as they could after taxes, and anyway all players except those at the minimum MLB rate are taxed in the highest bracket to begin with.

Presumably your tongue was in your cheek, but I'm feeling like a spoilsport right now.

-- Mal

[JEFF9K]

4. maybe not

All income over three million would be taxed at 91%, and the agent would get 10%. What's left?

[malthaussen]

6. Whatever could be negotiated is left.

The average ballplayer makes 3.2 mil, already taxed @ 91%(If that was the top rate). The agent's fee (which is more like 15% or more these days, I believe) is tax-deductible. Of course, good ballplayers, as opposed to average ones, are pulling in 15-20 mil already. The higher rates are paid by the Yankees (or the Dodgers -- have you seen their projected payroll for next year?) Anyway, when you're making more money than most people can score in three lifetimes, any further income is a matter of keeping score, not need. The best players will still insist on huge contracts because they want "respect."

-- Mal

[JEFF9K]

10. over 3

Their income over three million will be zero.

[Yavin4]

5. Yay! Then The Rich Owner of Baseball Team Would Get Even Richer!

Why pay labor their market value worth? Labor should be forced to accept arbitrary limits on their earnings. Meanwhile, owners will pocket the increased revenue that the sport generates.



Jeebus, get a clue.

[JEFF9K]

8. monopoly

Baseball is a monopoly, so what the players earn ISN'T market value.

[JEFF9K]

12. owners

Owners will also be subject to the 91% tax.

[Filibuster Harry]

7. Don't forget the teams that play in states with no state income tax.

[JEFF9K]

9. state tax

I'm referring to Federal income taxes.

[Yavin4]

11. Players Pay Taxes in States Where They Have Road Games

So, when a team plays in NY or Boston, they pay state taxes on the income that they make there for that visit.