A star Japanese pitcher who recently signed for the New York Yankees will pay an extra $12 million in taxes over the life of his contract for the privilege, Americans for Tax Reform said in a commentary on its website.
Masahiro Tanaka signed with the Yankees earlier this week for $155 million over 7 years. He had been considering the Chicago Cubs and Arizona Diamondbacks as well before being grabbed by the lure of the Big Apple.
But as Americans for Tax Reform noted, that decision came at a price: an extra chunk of local tax he will owe in New York City but would not have owed in Phoenix or Chicago, plus a higher state tax obligation.
For ATR's full calculations on Tanaka's tax burden, click here.