State analysts this month projected a $54 billion deficit, the worst in state history. And that figure makes sense, given how hard the coronavirus has shut down the entire west coast. The Dodgers are certainly one of those teams contributing to that deficit, as the state is missing tax from the players.
The ‘Joc Tax’, highlighted up by The LA Times, represents a 13.3 percent tax rate on athlete’s income every day they work within the state. So without players playing any games in the state, that’s another huge chunk of money Calfironai would be missing.
And perhaps that is the reason Governor Newsome decided to change his tune on sports being played in California. Just a few short weeks ago, Newsome advised that games being played within California by July seemed like a long shot. Then just last week, Newsome said that teams would be welcomed back without fans in the first week of June. The Dodgers and their fans were certainly happy to hear that.
LA Times has a projected figure of $143 million in taxes from baseball players that would have been generated if the entire 2020 season was played. The other projected option is $26 million for an 82-games season, all generated from taxes. It’s not much compared to the deficit, but every bit of money coming in keeps someone else working.
It’s also important to note that other leagues likely will not be playing in California. While the Dodgers get to go back to Chavez Ravine, the Lakers, Clippers, Warriors, and Kings will likely be finishing their seasons out of state. The same likely goes for the Ducks, Kings, and Sharks in the NHL.
So yes, while the Dodgers returning to California doesn’t make a ton of money for the state, it’s enough to keep at least a few doors open.