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2004 Regression MLB

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Written by:

David S


Date added:

November 22, 2013








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3 / 639


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In subsequent years, the tax rate rises for second and third time offenders. The luxury tax can be seen as a weaker form of a salary cap. With a normal salary cap, no team is permitted to exceed the cap, but with the luxury tax, teams may choose to exceed the tax threshold as long as they are willing to pay the tax...
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The idea is that teams will be less apt to have a higher payroll with the threat of giving up a chunk of their money to the league and lower revenue teams will get support from those who do. However, the luxury tax can be flawed. If teams have enough money, they can still spend as much as they want as long as they are able to pay the tax...
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