The luxury tax, another divisive issue in the negotiations between MLB and the players to avoid work stoppage

Hal Steinbrenner, the owner of the New York Yankees said he voted in favor of a Major League Baseball proposal to reduce the limit to which the so-called “luxury tax” is applied.

It is a plan that the players union opposes, at a time when baseball seems to be approaching what would be its first work stoppage in 26 years.

The luxury tax, Formally known as the competitive equilibrium tax, it was applied this year to teams whose payroll exceeded the $ 210 million limit. The owners proposed lower that threshold to $ 180 million and add a floor of $ 100 million dollars in payroll.

The union has opposed the measure, fearing it would lead to the imposition of a strict salary cap.

On Wednesday, at regular Major League Baseball (MLB) owners meetings, Steinbrenner said that the tax proposal was approved by the labor policy committee.

“There are seven of us in labor policy,” Steinbrenner said. “Boston, me, several mid-market teams, and a couple of small markets. We are a very diverse group And, when we put forward the proposal, including the luxury tax that we presented to the union, there was unanimous agreement in our committee. “

“And every owner on the committee certainly finds things they don’t like in the proposal. But we wanted to integrate a proposal that addresses their concerns, and show ourselves united as a group. “

The Major League Baseball Collective Agreement, in effect for five years, expires at 11:59 p.m. on December 1. Steinbrenner said the owners are in “ongoing” talks with the players’ union.

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