Agents worried about likely tax increase on salaries

Agents ponder effect of likely tax increase on clients' salaries
Associated Press
Updated: November 5, 2008, 4:04 PM ET

DANA POINT, Calif. -- Some baseball agents already are thinking about trying to beat a possible tax increase for their well-paid clients under an Obama administration.

President-elect Barack Obama has proposed increasing the top federal income tax rate from 35 percent to 39.6 percent, where it was under president Bill Clinton.

If signing bonuses are paid before Jan. 1, they likely would be taxed at the current rate and would not be subject to any increase.

"It's something we'll consider," agent Craig Landis said Tuesday at the general managers' meetings. "Besides the federal issue, we have a state issue in some cases, anyway, where it's advantageous to take signing bonuses because of the state income tax. A Florida resident can take the signing bonus and not have to pay his team's state tax."

Obama's proposal would increase federal income tax on families earning more than $250,000 annually, money that would help finance a decrease for workers and families earning less than $200,000. It's also possible more income might be subject to the Social Security tax.

Next year's major league minimum is $400,000. Agent Scott Boras, negotiating eight- and possibly nine-figure deals for free agents Manny Ramirez and Mark Teixeira, already has thought about the possibility of asking for larger signing bonuses payable this year in some of his contracts.

"There's some consideration to be had with the impact of the election," he said.

Free agents can't start negotiating money with all teams until Nov. 14. Only a relatively small percentage of contracts are finalized before Jan. 1.

Still, for a big-money free agent earning $10 million in 2009, Obama's plan could increase his federal tax by more than $400,000.

"I'm sure it will be kicked around," said Paul Kinzer, who represents free-agent closer Francisco Rodriguez.

Agents generally had thought about the possibility of a tax increase more than the GMs. Many of the club representatives said they likely wouldn't be able to determine until after Nov. 14 whether beating a tax hike was a trend.

"It's not off the wall," said Andrew Friedman, executive vice president for baseball operations of the AL champion Tampa Bay Rays. "We'd certainly be open-minded to it depending on what the rest of the terms of the deal are."

Also on the first full day of the meetings:

• Listing some of the Wall Street firms that have fallen, baseball commissioner Bud Selig warned GMs in a video conference about the national economy, mentioning that Bear Stearns, Lehman Brothers and Merrill Lynch have all collapsed or been taken over in the past year.

"We're living in a tumultuous economic period," Selig said later in a telephone interview with The Associated Press. "Many economists believe that we're going to have significant problems. Maybe this could turn out to be the most difficult period since the Great Depression. I view these coming months with trepidation."

I'm sure they'll live...

bobrob2004 wrote:

I'm sure they'll live...

:haha:

I've got a solution - set the salary cap at $249,999.99/yr. for the players...then they don't have to have their taxes go up. Oh wait, some of them make 100 times that.

catbox_9 wrote:

bobrob2004 wrote:

I'm sure they'll live...

:haha:

I've got a solution - set the salary cap at $249,999.99/yr. for the players...then they don't have to have their taxes go up. Oh wait, some of them make 100 times that.

awww, poor babies....
They SHOULD be contributing a lot of money to taxes!!! They make absolutely ridiculous incomes. But I'm for Catbox's idea...that's still being overpaid...

Quote :

Next year's major league minimum is $400,000.

Even this amount is too much!

GoGetEmTigers wrote:

Quote :

Next year's major league minimum is $400,000.

Even this amount is too much!

So salaries are on the rise and therefore ticket prices will follow. Regular people aren't really overwhelmed by their excess income at the moment. One of those things doesn't seem to go with the other two.

bobrob2004 wrote:

I'm sure they'll live...

But when Ilitch increases ticket prices where I can't afford to go anymore


I am outta this country



That and the fact that I hate Muslims

Because of 9/11 and I am 1/3 Armenian; [ I am also Irish and Polish] The Turks killed over 1,million Armenians after the WW1

In the Forgotten Genocide

Are the two main reasons why I hate Obama!


And I hope he dies in office!

And them Liberals on MLB. com and You Tube that sent me threats can do the same



They better hope Ilitch raises ticket prices because I may challenge them to meet me next year

Same goes for that Muslim on You Tube that wants to sodomize me and drink my blood


I ain't afraid of nobody



if that offends anyone here


But that is how I feel



I hope all you Obama people are happy I probably won't be able to afford season tickets and have to sell my house



Because of higher taxes

Thanks for Nothing

And I will immigrate someone else

Whether I am wanted there or not


If I have to get a Fake passport and ID

to do it


I change my name to Juan Valdez or something

The United Socialist States of America

Our founding fathers must be rolling over in their graves

If only Bush could have run for a third term



People would have voted him in again



The Greatest President of the 21st Century

gs78 wrote:

The Greatest President of the 21st Century

He's the only President in the 21st Century. Real good competition there...

bobrob2004 wrote:

gs78 wrote:

The Greatest President of the 21st Century

He's the only President in the 21st Century. Real good competition there...

Wasn't Clinton technically President for 19.5 days this century

In fairness to Bush, he probably did accomplish more in 8 years than Clinton did in his 19.5 days in office this century.

bobrob2004 wrote:

gs78 wrote:

The Greatest President of the 21st Century

He's the only President in the 21st Century. Real good competition there...

Hail Bush!




Jeb Bush runs in 2012

catbox_9 wrote:

bobrob2004 wrote:

gs78 wrote:

The Greatest President of the 21st Century

He's the only President in the 21st Century. Real good competition there...

Wasn't Clinton technically President for 19.5 days this century

In fairness to Bush, he probably did accomplish more in 8 years than Clinton did in his 19.5 days in office this century.

Of course he did


Bush did a lot


No terrorist attacks in the U.S since 9-11



Them terrorists know now not to mess with Bush

They need to build a monument in Washington for Bush

gs78 wrote:

They need to build a monument in Washington for Bush

Tear down the Lincoln Memorial maybe? What'd he ever do anyways except get us in a war?

catbox_9 wrote:

gs78 wrote:

They need to build a monument in Washington for Bush

Tear down the Lincoln Memorial maybe? What'd he ever do anyways except get us in a war?

Lincoln got America in the Civil War

Bush got America in Two Wars


Which America kicked ass in both



It gonna be a sad day when Bush leaves office



It gets you right there [ gs touching his chest]



Bush


A Real American Hero

Better than GI Joe and John Wayne

They should start a fund to get that statue of Bush Built



I would donate a few bucks


For Sure