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.
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