Major League Baseball Front-loading Contracts to Avoid Obama Tax Hikes?
President Barack Obama’s victory over Mitt Romney was of as much interest to baseball’s money men as the game scores, given the millions of dollars routinely guaranteed in player contracts these days.
As free agents negotiate deals this offseason, tax policy is an area that comes up along with the usual issues. Some players are wrangling for as much money as they can get before the end of the year to avoid a take hike in 2013.
“Front-loading would make sense if at all possible as tax rates will definitely go up on January 1st on all high-income taxpayers,” agent Greg Genske said in an email. “The only question is HOW MUCH will the rates increase????”
This much is known for now: Starting Jan. 1, there is an additional 0.9 percent Medicare tax on wages above $200,000 for individuals and $250,000 for married couples filing jointly under the federal Affordable Care Act, a rise to 2.35 percent.
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