Horsehide Harry
<B>Mr. Free Trade</B>
So your view is that if a freshman congressman from New York somehow manages to dramatically overhaul the tax code, that the best baseball players in the world are going to head to the Japanese league? LOL.
And this is something that baseball players signing contracts now should seriously take into consideration?
They are going to go where they make the most money just like any sane human being. The reason for that is that they are playing the game for money. If the tax code changes to the point where 70-90% of what they make goes away in the form of taxes, then yeah, I think you'll see guys heading away. Even now, players take into consideration State and local taxes when deciding where they want to play even though that is a relatively minor amount. If you change the tax code it WILL cause a response. If there are enough tax loopholes, write-offs, etc. to reduce the effective tax paid, then that will impact the response as well.
Watch what happens if the Trump tax changes stick. One of the big changes made was the new limit on what can be written off in terms of State, property and local taxes. Your bluest of blue States have used that for years and can't now. States like CA, NY, IL, NJ etc that have heavy State, Property and other tax obligations could soften the economic blow locally by using that as a write off on Federal taxes. The Trump tax bill changed that. If it sticks, and it looks like it will, then you're going to see migration of peoples out of those States and into States like Texas and Florida. This will also be true for businesses that will either have to raise compensation to keep employees or find employees willing to make an effective lesser wage, or move out of State into a friendlier tax area. When that happens, the erosion of the tax base in these States will become chronic and the ratio of tax payers versus benefit collectors will be unsustainable. As the wage migration progresses, many leaving those States will carry their Blue leanings with them into States like Texas, making the political landscape there bluer as well.
All that said, I can't believe that The USA is going to be a Socialist Country so the "then" part of the issue, likely isn't relevant.