I told Matt Lindsay this morning that I could hear the hammers at work building tax shelters overseas. Frank Stephenson at Division of Labor links to a piece which indicates that income shifting is likely to take place as well:
Obama's proposal would increase federal income tax on families earning more than $250,000 annually, money that would help finance a decrease for workers and families earning less than $200,000. It's also possible more income might be subject to the Social Security tax.
Next year's major league minimum is $400,000. Agent Scott Boras, negotiating eight- and possibly nine-figure deals for free agents Manny Ramirez and Mark Teixeira, already has thought about the possibility of asking for larger signing bonuses payable this year in some of his contracts.
"There's some consideration to be had with the impact of the election," he said.
Free agents can't start negotiating money with all teams until Nov. 14. Only a relatively small percentage of contracts are finalized before Jan. 1.
Still, for a big-money free agent earning $10 million in 2009, Obama's plan could increase his federal tax by more than $400,000.
Bang, bang, bang!