jamiethekiller wrote:Question on the Luxury tax.
Is it on everything AFTER 170 or whatever million or do they then tax you on the entire payroll?
i thought it was on the entire payroll when you went over the threshhold. i know that normal taxes don't work that way but i thought MLB's did.
wiki answered my question:
A team that goes over the luxury tax cap for the first time in a five-year period pays a penalty of 22.5% of the amount they were over the cap, second-time violators pay a 30% penalty, and teams that exceed the limit three or more times pay a 40% penalty. The cap limit for 2010 is $170 million, and the cap for 2011 is $178 million.[9]
yeah, no reason why they shouldn't go over the cap.