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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: U.S. ‘Accelerating’ Military Assault in Iran, Hegseth Says

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Video: U.S. ‘Accelerating’ Military Assault in Iran, Hegseth Says

new video loaded: U.S. ‘Accelerating’ Military Assault in Iran, Hegseth Says

On the fifth day of the war in Iran, Defense Secretary Pete Hegseth said that the U.S. military operation was intensifying and that more warplanes were arriving in the region.

By Christina Kelso

March 4, 2026

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US submarine sinks Iranian warship by torpedo in a first since World War II

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US submarine sinks Iranian warship by torpedo in a first since World War II

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A U.S. submarine sank a prized Iranian warship by torpedo, the first such sinking of an enemy ship since World War II, Secretary of War Pete Hegseth said Wednesday morning.

Hegseth joined Chairman of the Joint Chiefs of Staff Gen. Dan Caine at the Pentagon to provide an update to reporters on “Operation Epic Fury” in Iran.

“An American submarine sunk an Iranian warship that thought it was safe in international waters,” Hegseth said. “Instead, it was sunk by a torpedo. Quiet death. The first sinking of an enemy ship by a torpedo since World War Two. Like in that war, back when we were still the War Department. We are fighting to win.”

Caine said that an Iranian vessel was “effectively neutralized” in a Navy “fast attack” using a single Mark 48 torpedo. He added that the U.S. Navy achieved “immediate effect, sending the warship to the bottom of the sea.”

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WATCH HEGSETH’S ANNOUNCEMENT:

Hegseth said that the U.S. Navy sank the Iranian warship, the Soleimani. The flagship was named for Qasem Soleimani, an Iranian military officer who served in the Islamic Revolutionary Guard Corps who the U.S. killed in a January 2020 drone strike during President Donald Trump’s first term.

“The Iranian Navy rests at the bottom of the Persian Gulf. Combat ineffective, decimated, destroyed, defeated. Pick your adjective,” Hegseth said. “In fact, last night we sunk their prize ship, the Soleimani. Looks like POTUS got him twice. Their navy, not a factor. Pick your adjective. It is no more.”

This map shows U.S. and Israeli strikes against Iranian naval forces as of March 1. (Fox News)

Hegseth also told reporters at the briefing that the U.S. and Israel will soon achieve “complete control” over Iranian airspace after Iran’s missile capabilities were drastically diminished in the four days of fighting.

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US ‘WINNING DECISIVELY’ AGAINST IRAN, WILL ACHIEVE ‘COMPLETE CONTROL’ OF AIRSPACE WITHIN DAYS, HEGSETH SAYS

“More bombers and more fighters are arriving just today and now, with complete control of the skies, we will be using 500 pound, one thousand pound and 2,000 pound laser-guided precision gravity bombs, of which we have a nearly unlimited stockpile,” he said.

The war has killed more than 1,000 people in Iran and dozens in Lebanon, while U.S. officials said six American troops were killed in a fatal drone strike in Kuwait.

Thousands of travelers have been left stranded across the Middle East.

This map shows security and travel updates for Americans regarding countries in the Middle East region. (Fox News)

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Caine told reporters that the U.S. military is helping thousands of Americans stranded in the Middle East after the U.S. State Department urged citizens to leave more than a dozen countries.

Fox News Digital’s Ashley Carnahan contributed to this report.

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Israel says fighter jet took down Iranian warplane, the first shootdown of its kind
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Sen. Padilla preps for Trump trying to seize control of elections via emergency order

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Sen. Padilla preps for Trump trying to seize control of elections via emergency order

Sen. Alex Padilla (D-Calif.) is preparing for President Trump to declare a national emergency in order to seize control of this year’s midterm elections from the states, including by bracing his Senate colleagues for a vote in which they would be forced to either co-sign on the power grab or resist it.

In the wake of reporting last week that conservative activists with connections to the White House were circulating such an order, Padilla sent a letter to his Senate colleagues Friday stating that any such order would be “wildly illegal and unconstitutional,” and would no doubt face “extremely strict scrutiny” in the courts.

“Nevertheless, if the President does escalate his unprecedented assault on our democracy by declaring an election-related emergency, I will swiftly introduce a privileged resolution [and] force a vote in the Senate to terminate the fake emergency,” wrote Padilla, the ranking Democrat on the Senate Committee on Rules and Administration.

Padilla wrote that such an order — which could possibly “include banning mail-in voting, eliminating major voting registration methods, voter purges, and/or new document barriers for registering to vote and voting” — would clearly go beyond Trump’s authority.

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“Put simply, no President has the power under the Constitution or any law to take over elections, and no declaration or order can create one out of thin air,” Padilla wrote.

The same day Padilla sent his letter, Trump was asked whether he was considering declaring a national emergency around the midterms. “Who told you that?” he asked — before saying he was not considering such an order.

The White House referred The Times to that exchange when asked Tuesday for comment on Padilla’s letter.

If Trump did declare such an emergency, a “privileged resolution,” as Padilla proposed, would require the full Senate to vote on the record on whether or not to terminate it — forcing any Senate allies of the president to own the policy politically, along with him.

Experts say there is no evidence that U.S. elections are significantly affected or swung by widespread fraud or foreign interference, despite robust efforts by Trump and his allies for years to find it.

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Nonetheless, Trump has been emphatic that such fraud is occurring, particularly in blue states such as California that allow for mail-in ballots and do not have strict voter ID laws. He and others in his administration have asserted, again without evidence, that large numbers of noncitizen residents are casting votes and that others are “harvesting” ballots out of the mail and filling them out in bulk.

Soon after taking office, Trump issued an executive order purporting to require voters to show proof of U.S. citizenship before registering and barring the counting of mail-in ballots received after election day, but it was largely blocked by the courts.

Trump’s loyalist Justice Department sued red and blue states across the country for their full voter rolls, but those efforts also have largely been blocked, including in California. The FBI also raided an elections office in Georgia that has been the focus of Trump’s baseless claims that the 2020 presidential election was stolen from him.

Trump is also pushing for the passage of the SAVE Act, a voter ID bill passed by the House, but it has stalled in the Senate.

In recent weeks, Trump has expressed frustration that his demands around voting security have not translated into changes in blue state policies ahead of the upcoming midterm elections, where his shrinking approval could translate into major gains for Democrats.

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Last month, Trump wrote on his Truth Social platform, “I have searched the depths of Legal Arguments not yet articulated or vetted on this subject, and will be presenting an irrefutable one in the very near future. There will be Voter I.D. for the Midterm Elections, whether approved by Congress or not!”

Then, last week, the Washington Post reported that a draft executive order being circulated by activists with ties to Trump suggests that unproven claims of Chinese interference in the 2020 election could be used as a pretext to declare an elections emergency granting Trump sweeping authority to unilaterally institute the changes he wants to see in state-run elections.

Election experts said the Constitution is clear that states control and run elections, not with the executive branch.

Democrats have widely denounced any federal takeover of elections by Trump. And some Republicans have expressed similar concerns, including Sen. Mitch McConnell (R-Ky.), who chairs the Senate rules committee.

In the Wall Street Journal last year, McConnell warned against Trump or any Republican president asserting sweeping authority to control elections, in part because Democrats would then be empowered to claim similar authority if and when they retake power.

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McConnell’s office referred The Times to that Journal opinion piece when asked about the circulating emergency order and Padilla’s resolution.

Padilla’s office said his resolution would be introduced in response to an emergency declaration by Trump, but hoped it wouldn’t be necessary.

“Instead of trying to evade accountability at the ballot box,” Padilla wrote, “the President should focus on the needs of Americans struggling to pay for groceries, health care, housing and other everyday needs and put these illegal and unconstitutional election orders in the trash can where they belong.”

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