2004 Regression MLB

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Title: 2004 Regression MLB

Essay Details:

Subject: Miscellaneous

Author: Hans B

Date: September 30, 2014

Level: University

Grade: A

Length: 3 / 639

Essay text:

In subsequent years, the tax rate rises for second and third time offenders. The luxury tax can be seen as a weaker form of a salary cap. With a normal salary cap, no team is permitted to exceed the cap, but with the luxury tax, teams may choose to exceed the tax threshold as long as they are willing to pay the tax. The whole purpose of the luxury tax is to increase revenue sharing and therefore increase the competitive balance. The idea is that teams will be less apt to have a higher payroll with the threat of giving up a chunk of their money to the league and lower revenue teams will get support from those who do...

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