<P> A team that goes over the luxury tax threshold for the first time in a five - year period pays a penalty of 22.5% of the amount they were over the threshold, second - time violators pay a 30% penalty, and teams that exceed the limit three or more times pay a 50% penalty from 2013 onwards . There is also an incentive to lower payroll; if in any year a team goes under the threshold, the penalty rate decreases to 17.5%, 25% or 40% (depending on prior record over the previous five years) for the next time the tax is paid, which will apply from 2013 . </P> <P> The threshold for 2017 is $195 million . </P> <P> The following teams have been subject to luxury tax as of 2015: </P> <Table> Luxury tax paid per year by team (in millions of $) <Tr> <Th> Team </Th> <Th> 2003 </Th> <Th> </Th> <Th> 2005 </Th> <Th> 2006 </Th> <Th> 2007 </Th> <Th> 2008 </Th> <Th> 2009 </Th> <Th> </Th> <Th> 2011 </Th> <Th> 2012 </Th> <Th> 2013 </Th> <Th> 2014 </Th> <Th> 2015 </Th> <Th> Total </Th> </Tr> <Tr> <Th> Luxury tax threshold </Th> <Td> 117 </Td> <Td> 120.5 </Td> <Td> 128 </Td> <Td> 136.5 </Td> <Td> 148 </Td> <Td> 155 </Td> <Td> 162 </Td> <Td> 170 </Td> <Td> 178 </Td> <Td> 178 </Td> <Td> 178 </Td> <Td> 189 </Td> <Td> 189 </Td> <Td> - </Td> </Tr> <Tr> <Th> Yankees </Th> <Td> 11.80 </Td> <Td> 25.96 </Td> <Td> 34.05 </Td> <Td> 26.01 </Td> <Td> 23.88 </Td> <Td> 26.86 </Td> <Td> 25.69 </Td> <Td> 18.03 </Td> <Td> 13.90 </Td> <Td> 18.92 </Td> <Td> 28.11 </Td> <Td> 18.33 </Td> <Td> 26.1 </Td> <Td> 297.64 </Td> </Tr> <Tr> <Th> Dodgers </Th> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td> 11.42 </Td> <Td> 26.62 </Td> <Td> 43.6 </Td> <Td> 81.64 </Td> </Tr> <Tr> <Th> Red Sox </Th> <Td>--</Td> <Td> 3.15 </Td> <Td> 4.15 </Td> <Td> 0.50 </Td> <Td> 6.06 </Td> <Td>--</Td> <Td>--</Td> <Td> 1.49 </Td> <Td> 3.43 </Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td> 1.8 </Td> <Td> 20.58 </Td> </Tr> <Tr> <Th> Tigers </Th> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td> 1.31 </Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td> 1.31 </Td> </Tr> <Tr> <Th> Giants </Th> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td> 1.3 </Td> <Td> 1.3 </Td> </Tr> <Tr> <Th> Angels </Th> <Td>--</Td> <Td> 0.93 </Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td>--</Td> <Td> 0.93 </Td> </Tr> </Table>

What is the history behind the lack of a salary cap in mlb