Giancarlo Stanton just took a $32m pay cut to play for the Yankees

by Moshe W.

Giancarlo Stanton was traded from the Florida Marlins to the Yankees. The move will cost him $32m because while Florida has no state income tax, New York city and state both do.

New York state has an 8.82% tax rate and New York City has a 3.88% rate. Stanton is personally owed $265m over the next ten years (after subtracting 10% for his agent). His local tax bill will therefore be $32m. In years past, this would be partially offset by the deductibility of his local taxes against his far larger Federal tax bill. The current tax “reform” bill nearing completion in Congress, however, removes the deductibility of local taxes, so Stanton is going to get hit with the full bill. In effect, Stanton just took a $32m pay cut to play for the Yankees.

Illinois state tax is 3.75%, so Stanton would have only taken a $10m pay cut to play for the Cubs.

This is not technically Cubs news, but it is baseball financial news, and it is funny. Just some fun facts for your holiday get together.

Comments

I thought state taxes were determined by the number of games played in a specific state. So yes Stanton will pay more because the majority of his games will now be in NY, but its not to this degree. https://www.accountingweb.com/tax/individuals...

You are absolutely correct. The numbers should be halved. My bad.

I'm just glad not to be a tax accountant for a MLB player. That seems like a real nightmare, I appreciate your efforts on helping explain these details. I remember hearing once that players are even taxed on tickets received as comps.

Recent comments

Subscribe to Recent comments
The first 600 characters of the last 16 comments, click "View" to see rest of comment.
  • crunch 3 hours 6 min ago (view)

    Chicago Cubs Thumbs Up GIF by NBC Sports Chicago

     

  • Alexander Dimm 3 hours 32 min ago (view)

    I'm in.  What more do we need, really.  A beer.  A game or two.  The 162 game season can wait until next year (I hope).  Have fun with a micro-mini season.  Let the powers fight over the labor agreements.  They can finish by next spring, right?

     

  • crunch 3 hours 43 min ago (view)

    2020 quickly shaping up to be the best season ever.

     

  • Cubster 5 hours 3 min ago (view)

    And a few kegs of beer. Hamberders too.

     

  • crunch 7 hours 16 min ago (view)

    they should just play a quick weekend tourney where no one actually wins and everyone gets a small participation trophy.

    declare the fans the MVPs and dedicate the series to everyone who has died in the history of humanity.

    ...then a free live-streamed Nickleback concert hosted by 2Pac's hologram

     

  • Charlie 1 day 12 hours ago (view)

    Lol at worrying about a second wave disrupting revenue.

     

  • Cubster 1 day 15 hours ago (view)

    IN BRIEF (Tribune, from their mini-sports section):    In a letter, MLB rejects players’ plan for 114 gamesNews services Major League Baseball rejected the players’ proposal for a 114-game schedule in the pandemic-delayed season with no additional salary cuts, telling the union that teams have no reason to think 82 games is possible and now will discuss even fewer.Players made their proposal Sunday, five days after management’s initial economic plan.

     

  • Cubster 1 day 15 hours ago (view)

    Pete Ricketts causing some backspin on their serve...Chi Tribune, Thursday AM:

     

  • Arizona Phil 2 days 20 min ago (view)

    Here are the last two Cubs minor league releases from this week (for a final total of 30): 

    Conor Lillis-White, LHP (acquired frrom LAA for Tommy LaStella post-2018 - missed 2019 season with hip flexor injury)

    Alberto Mineo, C-1B (has been quarantined in Italy since he re-signed with Cubs in February) 

    Lillis-White was eligible for selection in the 2020 Rule 5 Draft, and Mineo was eligible to be a minor league 6YFA post-2020 

     

  • Charlie 2 days 1 hour ago (view)

    Great read from players I came of age watching. Really shows how badly MLB needs to empower their players to speak in real time and not just after retiring.

     

  • crunch 2 days 2 hours ago (view)

    "A conversation: Retired African American MLB players on race, baseball, America"

    https://theathletic.com/1849574/2020/06/02/a-conve...

    d.glanville, j.rollins, r.howard, d.willis, t.hunter, l.hawkins

    unlocked/free article.

     

  • Jackstraw 2 days 4 hours ago (view)

    I'm trying to come up with scenarios where saying "The problem I have with you people....." really helps the conversation move forward constructively.  None really jump to mind.

     

  • crunch 2 days 5 hours ago (view)

    i still want proof that tom ricketts and ted cruz aren't the same person

     

  • Cubster 2 days 6 hours ago (view)

    Tom's older brother is an ass, even with an embarrassing apology.

    Here is the twitter video from Pastor Jarrod Parker: 

    https://twitter.com/nowthisnews/status/12678894685...

     

  • Cubster 2 days 15 hours ago (view)

    I agree.  Laura is the real deal. I think she was the major influence that showed Tom R. and Crane Kenney how to show a "human side" and deal realistically and in a non-threatening way, with the local Chicago politicians. Kenney was clearly clueless in his initial attempts regarding the neighborhood, the Rooftop owners, and the Wrigley Field rebuild. 

     

  • Hagsag 2 days 16 hours ago (view)

    I am a Laura Ricketts fan. To hell with the rest of them.