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This state senator tried to curb the Dodgers' deferral 'loophole.' So far, no luck

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This state senator tried to curb the Dodgers' deferral 'loophole.' So far, no luck

The Houston Astros are hated because they cheated. The Dodgers are not cheating. Outside Los Angeles, however, they are hated a little more every day.

The supply of money appears endless. So does the line of All-Stars. But the deferred contracts are what might irk the haters the most.

The defending World Series champions have fortified their roster with a series of “play now, pay later” deals, all in accordance with the collective bargaining agreement, all giving the Dodgers a modest break on their luxury taxes. And so, the haters ask, can someone please stop the Dodgers?

Josh Becker would like to. He is a California senator, a Democrat from Menlo Park. The Dodgers have deferred more than $1 billion in salary over the last five years. Every dollar of salary deferred could be a dollar the state cannot tax.

“The Dodgers are exploiting that loophole,” Becker told me. “It was never intended to be for anything remotely like this.”

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The loophole is this: Under federal law, if you earn your salary in one state and retire elsewhere, you may not need to pay income taxes on the salary you defer for retirement.

That puts California at risk of losing up to $138 million in revenue because of the Dodgers’ deferrals — $90 million on Ohtani’s contract alone, should he return to Japan or move to another state after his deal expires.

“He’s exploiting something that was meant to be for people with pensions of $20,000 or $25,000 … people who have a small amount of pension, later in life, as actual retirement,” Becker said. “That’s what it was meant to be.

“We set up a system. Other people abide by it. And you’re basically dodging taxes that other people have to pay. It’s basic fairness.”

In December 2023, the Dodgers signed Ohtani to a 10-year, $700-million contract, with $680 million deferred beyond the life of the contract. Four weeks later, state controller Malia Cohen said the contract illustrated the need for Congress to limit how much money could be deferred without being subject to taxes.

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“This action would not only create a more equitable tax system,” Cohen said in a statement, “but also generate additional revenue that can be directed towards addressing pressing important social issues and fostering economic stability.”

Last March, Becker introduced a bill that urged Congress to “establish a reasonable cap on deferred compensation.” The first line of the bill: “WHEREAS, In December 2023, the Los Angeles Dodgers baseball team signed a 10-year, $700,000,000 contract with pitcher and hitter Shohei Ohtani.”

The bill cleared the state senate but died in the assembly; Becker withdrew the bill once he realized it would not pass.

California’s income tax rate for top earners is 13.3%, the highest in the country. It would make financial sense that players and others would retire to states like Florida and Texas, where there is no state income tax.

Among the concerns Becker said he heard about his bill: wealthy executives, not just ballplayers, benefit from such deferred compensation.

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“They shouldn’t be using it either,” he said. “Let’s close the loophole.”

This is not just about Ohtani or the Dodgers, Becker said. This is about leveraging the attention on Ohtani and the Dodgers to try to reform tax law.

Becker said he may introduce his bill again. His timing could be better. The bill basically asks Congress to make some people pay more in taxes. There is a better chance the Colorado Rockies win the World Series this year than Congress would pass — and President Trump would sign — such a bill.

“If anything, they’re focused on cutting corporate taxes, rather than having people pay their fair share,” Becker said.

Becker represents a district in San Francisco Giants territory but grew up in Philadelphia and remains a Phillies fan. He does not really blame the Dodgers. He blames Congress. Shhhh, but he kind of admires the Dodgers.

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“The Dodgers,” he said, “are building a little bit of a dynasty there.”

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Video: Fed Chair Responds to Inquiry on Building Renovations

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Video: Fed Chair Responds to Inquiry on Building Renovations

new video loaded: Fed Chair Responds to Inquiry on Building Renovations

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Fed Chair Responds to Inquiry on Building Renovations

Federal prosecutors opened an investigation into whether Jerome H. Powell, the Federal Reserve chair, lied to Congress about the scope of renovations of the central bank’s buildings. He called the probe “unprecedented” in a rare video message.

“Good evening. This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead, monetary policy will be directed by political pressure or intimidation.” “Well, thank you very much. We’re looking at the construction. Thank you.”

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Federal prosecutors opened an investigation into whether Jerome H. Powell, the Federal Reserve chair, lied to Congress about the scope of renovations of the central bank’s buildings. He called the probe “unprecedented” in a rare video message.

By Nailah Morgan

January 12, 2026

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San Antonio ends its abortion travel fund after new state law, legal action

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San Antonio ends its abortion travel fund after new state law, legal action

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San Antonio has shut down its out-of-state abortion travel fund after a new Texas law that prohibits the use of public funds to cover abortions and a lawsuit from the state challenging the city’s fund.

City Council members last year approved $100,000 for its Reproductive Justice Fund to support abortion-related travel, prompting Texas Attorney General Ken Paxton to sue over allegations that the city was “transparently attempting to undermine and subvert Texas law and public policy.”

Paxton claimed victory in the lawsuit on Friday after the case was dismissed without a finding for either side.

WYOMING SUPREME COURT RULES LAWS RESTRICTING ABORTION VIOLATE STATE CONSTITUTION

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Texas Attorney General Ken Paxton claimed victory in the lawsuit after the case was dismissed without a finding for either side. (Hannah Beier/Bloomberg via Getty Images)

“Texas respects the sanctity of unborn life, and I will always do everything in my power to prevent radicals from manipulating the system to murder innocent babies,” Paxton said in a statement. “It is illegal for cities to fund abortion tourism with taxpayer funds. San Antonio’s unlawful attempt to cover the travel and other expenses for out-of-state abortions has now officially been defeated.”

But San Antonio’s city attorney argued that the city did nothing wrong and pushed back on Paxton’s claim that the state won the lawsuit.

“This litigation was both initiated and abandoned by the State of Texas,” the San Antonio city attorney’s office said in a statement to The Texas Tribune. “In other words, the City did not drop any claims; the State of Texas, through the Texas Office of the Attorney General, dropped its claims.”

Texas Attorney General Ken Paxton said he will continue opposing the use of public funds for abortion-related travel. (Justin Lane/Reuters)

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Paxton’s lawsuit argued that the travel fund violates the gift clause of the Texas Constitution. The state’s 15th Court of Appeals sided with Paxton and granted a temporary injunction in June to block the city from disbursing the fund while the case moved forward.

Gov. Greg Abbott in August signed into law Senate Bill 33, which bans the use of public money to fund “logistical support” for abortion. The law also allows Texas residents to file a civil suit if they believe a city violated the law.

“The City believed the law, prior to the passage of SB 33, allowed the uses of the fund for out-of-state abortion travel that were discussed publicly,” the city attorney’s office said in its statement. “After SB 33 became law and no longer allowed those uses, the City did not proceed with the procurement of those specific uses—consistent with its intent all along that it would follow the law.”

TRUMP URGES GOP TO BE ‘FLEXIBLE’ ON HYDE AMENDMENT, IGNITING BACKLASH FROM PRO-LIFE ALLIES

Texas Gov. Greg Abbott signed a law in August that blocks cities from using public money to help cover travel or other costs related to abortion. (Antranik Tavitian/Reuters)

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The broader Reproductive Justice Fund remains, but it is restricted to non-abortion services such as home pregnancy tests, emergency contraception and STI testing.

The city of Austin also shut down its abortion travel fund after the law was signed. Austin had allocated $400,000 to its Reproductive Healthcare Logistics Fund in 2024 to help women traveling to other states for an abortion with funding for travel, food and lodging.

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California Atty. Gen. Rob Bonta opts against running for governor. Again.

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California Atty. Gen. Rob Bonta opts against running for governor. Again.

California Atty. Gen. Rob Bonta announced Sunday that he would not run for California governor, a decision grounded in his belief that his legal efforts combating the Trump administration as the state’s top prosecutor are paramount at this moment in history.

“Watching this dystopian horror come to life has reaffirmed something I feel in every fiber of my being: in this moment, my place is here — shielding Californians from the most brazen attacks on our rights and our families,” Bonta said in a statement. “My vision for the California Department of Justice is that we remain the nation’s largest and most powerful check on power.”

Bonta said that President Trump’s blocking of welfare funds to California and the fatal shooting of a Minnesota mother of three last week by a federal immigration agent cemented his decision to seek reelection to his current post, according to Politico, which first reported that Bonta would not run for governor.

Bonta, 53, a former state lawmaker and a close political ally to Gov. Gavin Newsom, has served as the state’s top law enforcement official since Newsom appointed him to the position in 2021. In the last year, his office has sued the Trump administration more than 50 times — a track record that would probably have served him well had he decided to run in a state where Trump has lost three times and has sky-high disapproval ratings.

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Bonta in 2024 said that he was considering running. Then in February he announced he had ruled it out and was focused instead on doing the job of attorney general, which he considers especially important under the Trump administration. Then, both former Vice President Kamala Harris and Sen. Alex Padilla (D-Calif.) announced they would not run for governor, and Bonta began reconsidering, he said.

“I had two horses in the governor’s race already,” Bonta told The Times in November. “They decided not to get involved in the end. … The race is fundamentally different today, right?”

The race for California governor remains wide open. Newsom is serving the final year of his second term and is barred from running again because of term limits. Newsom has said he is considering a run for president in 2028.

Former Rep. Katie Porter — an early leader in polls — late last year faltered after videos emerged of her screaming at an aide and berating a reporter. The videos contributed to her dropping behind Riverside County Sheriff Chad Bianco, a Republican, in a November poll released by the UC Berkeley Institute of Governmental Studies and co-sponsored by The Times.

Porter rebounded a bit toward the end of the year, a poll by the Public Policy Institute of California showed, however none of the candidates has secured a majority of support and many voters remain undecided.

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California hasn’t elected a Republican governor since 2006, Democrats heavily outnumber Republicans in the state, and many are seething with anger over Trump and looking for Democratic candidates willing to fight back against the current administration.

Bonta has faced questions in recent months about spending about $468,000 in campaign funds on legal advice last year as he spoke to federal investigators about alleged corruption involving former Oakland Mayor Sheng Thao, who was charged in an alleged bribery scheme involving local businessmen David Trung Duong and Andy Hung Duong. All three have pleaded not guilty.

According to his political consultant Dan Newman, Bonta — who had received campaign donations from the Duong family — was approached by investigators because he was initially viewed as a “possible victim” in the alleged scheme, though that was later ruled out. Bonta has since returned $155,000 in campaign contributions from the Duong family, according to news reports.

Bonta is the son of civil rights activists Warren Bonta, a white native Californian, and Cynthia Bonta, a native of the Philippines who immigrated to the U.S. on a scholarship in 1965. Bonta, a U.S. citizen, was born in Quezon City, Philippines, in 1972, when his parents were working there as missionaries, and immigrated with his family to California as an infant.

In 2012, Bonta was elected to represent Oakland, Alameda and San Leandro as the first Filipino American to serve in California’s Legislature. In Sacramento, he pursued a string of criminal justice reforms and developed a record as one of the body’s most liberal members.

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Bonta is married to Assemblywoman Mia Bonta (D-Alameda), who succeeded him in the state Assembly, and the couple have three children.

Times staff writer Dakota Smith contributed to this report.

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