Dec 22, 2009, 11:05 AM EDT
The luxury tax is an arrangement by which teams [cough! — the Yankees — cough!] whose payroll exceeds a certain
figure determined each year are taxed on the excess amount. The tax is
paid to the league which then puts the money into its “industry-growth
fund.” I guess the industry as grown so it wouldn’t be appropriate to call it a slush fund or anything, but I’m not sure I’ve ever seen a breakdown of what actually happens to that dough.
Anyway, the Yankees have paid the tax every year since it was invented. In fact, they have paid $174 million of the tax’s $190 million in total collections since 2003. They are the sole team to pay it this year, getting rung up for $25.69 million. Put differently, their luxury tax is something like 70% of the Marlins total payroll.
Yet, despite the huge and disproportionate tax bill, they continue to prosper and don’t scream about tyranny and socialism and all of that. Not that I’m making a political statement or anything. That would be outside the scope of this blog, and I’d never ever go off on a non-baseball tangent, no sir.
- Settling the Score: Friday’s results 0
- Josh Hamilton’s teammates say he’s in great shape and ready to play 4
- Mike Trout hit his 100th career home run to become the youngest member of the 100 HR/100 SB club 20
- Make that two: Alex Rodriguez hits second homer of the night, giving him 658 for his career 38
- Alex Rodriguez hit his 657th career home run 48
- Let’s all just stare at Kris Bryant’s numbers for a while 28
- And That Happened: Thursday’s scores and highlights 39
- The wait is over: The Cubs are calling up top prospect Kris Bryant on Friday 99
- The Commissioner’s Office thinks that the Angels could indeed go after Josh Hamilton under his contract (153)
- “Why Ted Cruz is like the Atlanta Braves” (150)
- “We no longer need the terrorists. We’re now so good at terrorizing ourselves.” (143)
- Another argument in favor of making the DH universal (127)
- When it comes to Josh Hamilton, Arte Moreno is a craven opportunist, not a “smart businessman” (116)