David Price may have had the year of his life in 2012. As if the Cy Young Award wasn’t enough for the ace of the Rays staff, he also managed to skirt around the IRS.
Yes, that’s right – the IRS. The very mention of that organization makes many Americans cringe; so how did Price do it? Let’s just say his Vanderbilt education paid off here.
In an effort to avoid the fiscal cliff, congress passed The American Taxpayer Relief Act of 2012. This act raises the top federal income tax from 35% to 39.6%. Factoring in the structure of his deal and the $5M signing bonus, Price stands to save roughly $400,000 in income tax for 2012. But Price isn’t the only one making out here, the Rays deferred $4M from the contract until 2014. And since the deal is a one-year deal, the Rays may be able to avoid paying that amount all together if he gets traded and the terms are agreed upon.
It is becoming more and more likely that 2013 will be the final season in Tampa Bay for the Cy Young Award winner.
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