As part of Major League Baseball’s new collective bargaining agreement that was ratified earlier this week, the owners and union agreed to a fourth-tier surcharge for reaching the $290 million luxury tax threshold.
The league-wide surcharge has been coined the “Cohen Tax” as the penalty was put in place to combat the lucrative spending on payroll by Mets owner Steve Cohen.
Cohen opened up on the new tax rules at the Mets spring training complex in Port St. Lucie, Florida on Sunday.
“I know the name for it, it’s called the Cohen Tax … the way I describe it, it’s better than a bridge being named after you or something like that.