Thread: Luxury Tax
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Old 12-07-2013, 10:01 AM   #8
NYY #23
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There is no salary cap though. The $189 mil is the luxury tax number, and the Yankees have exceeded it every year. It works on a sliding scale, so the first time you exceed it you pay something like 17% for the amount you are over. The Yankees are up to 50%, so their reason for going under was to reset their luxury tax rate, so when they go over next year they pay 17% again.
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