Cumberland Times-News

Local Sports

November 22, 2012

Obama tax increases could factor in MLB negotiations



Team executives and agents wandered into the Agave Sunset lounge at the resort where the general managers' meetings were held in Indian Wells, Calif. Four of the six flat-screen televisions were showing election coverage, with the other two turned to sports.

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.

In addition, the Bush tax cuts are scheduled to expire at the end of the year, which could raise the highest marginal federal tax rate from 35 percent to 39.6 percent — although a deal between Obama and Congress could change that.

Oakland Athletics general manager Billy Beane figures agents will be on top of the changes — but the results of negotiations about the so-called fiscal cliff are unpredictable.

"I think if you're hopping around the potential of tax reform, you're probably chasing your tail," Beane said. "If they can predict when something's going to happen, then they're much further ahead than the lawmakers."

Text Only
Local Sports
  • Lohr helps Cork’s Cars to 4-0 win

    Broc Lohr allowed one hit on the mound and had his team’s only hit at the plate as Cork’s Cars scrapped together four runs to shut out Madigan’s Auto Parts 4-0 on Monday at the Hot Stove Complex.

    July 22, 2014

  • Northside blanks Hite in opener

    Evan Rodeheaver tossed five innings of two-hit, shutout ball to allow the Northside Diamond Dogs to gain a 1-0 lead in its opening round playoff series by beating Hite Roofing 10-0 Monday at Northern High School.

    July 22, 2014

  • Titans sweep on shutouts

    Cody Ellsworth and Jacob Foreman both pitched complete-game shutouts to keep the Tri-State Titans undefeated in the Pen-Mar-WV League after sweeping the Cumberland Orioles Sunday afternoon at Bel Air Field.

    July 22, 2014

  • Sports Roundup - 07/22/2014

    July 21, 2014

  • Sports Calendar - 07/22/2014

    July 21, 2014

  • Jeter turns small part of attention to business Jeter turns small part of attention to business

    Pedestrians craned their necks as Derek Jeter stood in front of a food truck parked across the street from Central Park.

    July 21, 2014 1 Photo

  • RTA could close disconnect between teams, NASCAR RTA could close disconnect between teams, NASCAR

    There is no clearer example of the disconnect between NASCAR and its teams then the fight earlier this year over the procedures to cool cars down during qualifying.

    July 21, 2014 1 Photo

  • Tour leader Nibali: A ‘flag-bearer’ against doping Tour leader Nibali: A ‘flag-bearer’ against doping

    Barring a disaster for him on French roads from now until Sunday, the man who looks set to win the Tour de France says he understands that cycling is still paying for its longtime doping plague.

    July 21, 2014 1 Photo

  • Madigan’s moves on, 7-6

    GRANTSVILLE — Madigan’s Auto Sales built a 7-2 lead through six innings then held on as Grantsville Sons of American Legion scored four times in the bottom of the seventh to make it close before Madigan’s got the final out Sunday afternoon at Grantsville Park.

    July 21, 2014

  • Sports Roundup - 07/21/14

    July 21, 2014