MLB's current collective bargaining agreement sets a 'payroll threshold' each season that is somewhat similar to a salary cap. For the 2007 season, this threshold has been set at $148 million ($155 million in 2008). Should the average annual value of a team's total salary contracts surpass this threshold in any year, they pay a 'tax' on the amount over the threshold. The tax is graduated such that a team pays a progressively higher percentage every year it exceeds the threshold, to a maximum of 40%. As an example, when Roger Clemens signed with the Yankees this season, his salary was reported at $18.5 million. But since the Yankees have already exceeded the payroll threshold several times, they were forced to pay the maximum luxury tax on his salary of 40%. Applied to Clemens' salary, the tax comes to $7.4 million. So in actuality, Clemens is costing the Yankees $25.9 million this season. The Luxury Tax is also called the 'Competitive Balance Tax'. Ironically, the money from the tax isn't distributed to smaller market teams to promote competitive balance. Instead, it goes into an 'Industry Growth Fund' that MLB uses for player benefits and to promote the growth of Baseball around the world. Money is distributed to smaller revenue teams, but that money comes from MLB's revenue sharing program, which is entirely separate and independent of the luxury tax.
The luxury tax threshold for 2008 is $155 million. For 2009 it is $162 million.
to try to control a teams budget that they spend on player
My question is; If the new York Yankees are building a new stadium with their own money do they still pay a luxury tax on their payroll?
no their is no luxury tax in California anymore.
The luxury tax is a tax on luxury goods, which are products considered not essential for living. The luxury is levied at different rates depending on the price of the product.
Luxury tax adds 15% to your total cost. For instance, a $600 pair of jeans would be taxed an additional $30 for luxury tax.
sale package 10000 so what amount we will calculate in luxury tax & what is the reason
The luxury tax threshold for 2008 is $155 million. For 2009 it is $162 million.
The Luxury Tax in Monopoly is $75. It is found between Park Place and Boardwalk.The U.S. edition of Monopoly raised it's Luxury tax to $100. Monopoly is not the only place you can find a Luxury tax. Many high end hotels charge them.
No.
excise tax
4