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Chicago Cubs 2020 Season
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<blockquote data-quote="Greensboro" data-source="post: 1505669" data-attributes="member: 7536"><p><a href="http://m.mlb.com/glossary/transactions/competitive-balance-tax" target="_blank">Luxury tax link</a></p><p>Additionally, financially it is 20% of surplus over limit for first year, then 30% year 2, then 50% for 3 or more years..As I read it, for the Cubs, they were under limit in 2018, over in 2019, so if they go over in 2020 they are in 30% tax, 2021 would be the 50%. So there certainly is an incentive to drop back below limit and reset the tax rate if you are going to make a run at Baez when his contract comes up & fill some of the holes at the same time.</p></blockquote><p></p>
[QUOTE="Greensboro, post: 1505669, member: 7536"] [URL='http://m.mlb.com/glossary/transactions/competitive-balance-tax']Luxury tax link[/URL] Additionally, financially it is 20% of surplus over limit for first year, then 30% year 2, then 50% for 3 or more years..As I read it, for the Cubs, they were under limit in 2018, over in 2019, so if they go over in 2020 they are in 30% tax, 2021 would be the 50%. So there certainly is an incentive to drop back below limit and reset the tax rate if you are going to make a run at Baez when his contract comes up & fill some of the holes at the same time. [/QUOTE]
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Chicago Cubs 2020 Season
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