Why Isn’t This Income Inequity An Issue?

A baseball player…let me repeat that…a baseball player…and I love baseball…is going to be paid $300 million over 10 years:

On Tuesday, we found out: a 10-year, $300 million contract for Manny Machado to play for the San Diego Padres, a small-market, low-spending team that lost 96 games last season and hasn’t been to the playoffs since 2006.

The Machado contract isn’t “too high.” It is the highest price ever paid for a free agent in any American sport. (That record was set by Alex Rodriguez in 2007, so it was bound to fall.)

A lot of ink and electrons have been sacrificed over the years to decry inequity in pay. Often what CEOs make compared to…well anyone else at a company. Low whistles are followed by grumbled mumblings that nobody…nobody is worth whatever that CEO is making.

And now we have a baseball player…a 26 year old baseball player…ok I take that part back…age shouldn’t have anything to do with worth or value…is going to be paid $30 million a year. NOBODY is worth that. (and yes the same is true of hollywood stars and tv celebrities). Nobody is worth that.

And in this case you can’t even use the excuse so often made about highly compensated individuals: Mr. Machado is a job creator. He ain’t no such thing. In fact his salary is going to come out of increased ticket prices, increased concessions prices, increased prices for memorabilia, sponsorships which will result in higher prices for goods, additional advertising around sporting events, and increased prices for autographs and personal appearances, etc. Money taken directly out of the pockets of fans and consumers.

But nobody is complaining about what he is about to make compared to what you are going to make this year. Or what I am going to make this year. Or any other American. Nary a whimper about it’s unfairness…and only a lukewarm fairness defense from sports writers. Why is this allowed to stand? (I know ~ it proves there’s no collusion in baseball. LOL!)

So when someone suggests that we tax the top income tiers at higher rates…instead of the giveaways that are inherent in the Trump Tax Laws…keep Manny Machado in mind. TAX HIM! And 70% ain’t too high!

Extra Credit Reading For Our Back Pages: There are no job creating super rich!

OR: Buffett Tax vs. Job Creators


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