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. Last Updated: 07/27/2016

Owners Propose Payroll 'Tax'

HERNDON, Virginia -- Striking U.S. Major League Baseball players have received a 102-page contract proposal from owners that calls for a progressive "tax" on all payrolls above the league average.

In their first new offer since June 14, owners also revised their old salary cap proposal, which was expected to be shelved while the two sides bargained this month.

In a windowless conference room at a hotel in suburban Washington, the two sides met together for four hours Thursday. Players left the meeting carrying blue folders containing copies of the proposal.

Both sides heeded the urgings of mediator W.J. Usery and kept their public comments as bare as possible. But several sources confirmed details.

The management offer asks for a tax on team payrolls that exceed the league average, which was approximately $36 million in 1994 including benefits. Each $250,000 or $500,000 jump in a team's payroll would increase the tax rate, and there would be no limit or ceiling on rates.

"It's basically a salary cap," a union source said. "It's a disincentive to sign players. But they said everything in their proposal was negotiable, so we'll see."