"I would urge Congress to take immediate and decisive action" - California controller sounds alarm over Shohei Ohtani's glaring deferred Dodgers deal

Shohei Ohtani's contract deferral with the Los Angeles Dodgers has caught the eye of a lot of people, including some higher ups in the state of California. It was so eye-catching that the state controller has stepped in to plead with the government to get involved.

The Dodgers are deferring $680 million of the $700 million that Ohtani is earning over his decade-long contract. That effectively means they will pay him a $2 million salary every year.

The team has to pay a little more than that due to the deferral rules, but Ohtani's taxable income is far lower than it could be, and the state of California is none too pleased with that.

Controller Malia Cohen said in a statement Monday via the Los Angeles Times:

“The current tax system allows for unlimited deferrals for those fortunate enough to be in the highest tax brackets, creating a significant imbalance in the tax structure. The absence of reasonable caps on deferral for the wealthiest individuals exacerbates income inequality and hinders the fair distribution of taxes. I would urge Congress to take immediate and decisive action to rectify this imbalance."

Cohen believes that this is an unfair loophole used by the ultra rich that ultimately impacts the tax levels for the state. Ordinarily, Ohtani would be taxed on his $70 million salary, but not in this case.

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California controller wants Congress to step in on Shohei Ohtani deal

Shohei Ohtani's deal with the Los Angeles Dodgers is massive, but they're hardly paying him any of it this season. He's making a paltry $2 million, which comes with much lower taxes.

The state controller doesn't like Shohei Ohtani's deferrals

State controller Malia Cohen doesn't like that too much, as she believes it harms the tax totals of the state, which impacts their ability to pay for social programs and other things that taxes go to.

She said:

“Introducing limits on deductions and exemptions for high-income earners promotes social responsibility and contributes to a tax system that is just and beneficial for all."

It's unclear if Congress has any way to actually do anything about this, since it's an MLB rule that the Dodgers have in no way manipulated or violated.