
It felt groundbreaking when Shohei Ohtani did it with the Los Angeles Dodgers over a year ago. By the time Frank Vatrano did it with the Anaheim Ducks earlier this month, it was a certified California trend.
Athletes, like everyone else, don't like paying taxes. California has a top marginal income tax rate of 13.3 percent, plus there's the top federal rate of 37 percent, so high-earners like athletes are forking over a lot of hard-earned money. But if the team a player wants to sign with is in California, what can they do to avoid the state's high taxes? As Ohtani and Vatrano have now done, they can defer the income until they likely won't be living in the Golden State anymore.