Like most Americans, 50 Cent, aka Curtis Jackson III, is not a big fan of paying sky-high taxes. Such is why he tweeted “Yeah, i don’t want to be 20cent. 62% is a very, very, bad idea. I don’t like it,” on October 19.
Jackson, who also goes by the nickname Ferrari F-50, was referring to Joe Biden’s tax plan, which would nail New York’s highest earners with an unbelievable tax rate that would top out at 62 percent, according to a CNBC article.
“High earners in New York and California could face combined federal and state tax rates of 62% under Democratic presidential nominee Joe Biden’s tax plan, according to experts,” the article says.
Jackson, who was born and raised in Queens, New York, made it clear as day that he thinks a tax rate above 60 percent is outrageous.
In another tweet, he said, “WHAT THE F*CK! (VOTE ForTRUMP) IM OUT, F*CK NEW YORK. The KNICKS never win anyway. I don’t care Trump doesn’t like black people 62% are you out of ya f*cking mind.”
Although Jackson’s loathing of the 62 percent tax rate he could face if Joe Biden wins the presidency does not apply to most Americans, it certainly should ring alarm bells for every American because these higher rates would stifle economic growth.
According to the Tax Foundation, “Democratic presidential nominee Joe Biden would enact a number of policies that would raise taxes on individuals with income above $400,000, including raising individual income, capital gains, and payroll taxes. Biden would also raise taxes on corporations by raising the corporate income tax rate and imposing a corporate minimum book tax.”
The tax hikes Biden is calling for would not only diminish economic growth, they would also negatively impact those earning far less than $400,000.
As the Tax Foundation reports, “the Biden tax plan would reduce GDP by 1.47 percent over the long term. On a conventional basis, the Biden tax plan by 2030 would lead to about 6.5 percent less after-tax income for the top 1 percent of taxpayers and about a 1.7 percent decline in after-tax income for all taxpayers on average.”
Even worse, “Biden’s tax plan would reduce the economy’s size by 1.47 percent in the long run. The plan would shrink the capital stock by just over 2.5 percent and reduce the overall wage rate by a little over 1 percent, leading to about 518,000 fewer full-time equivalent jobs.”
Although Democrats will never admit it, tax hikes trickle down. When taxes are raised on high earners and corporations, the net effect is fewer jobs, lower wage growth, and less economic dynamism.
Fortunately, the opposite occurs when taxes are lowered. As the 2017 Tax Cuts and Jobs Act (TCJA) has shown, lower taxes lead to economic growth, which leads to more jobs and higher wages.
According to the Tax Foundation, “the Tax Cuts and Jobs Act will increase long-run GDP by 1.7 percent, create 339,000 jobs, and raise wages by 1.5 percent.”
In 2018 and 2019, before the coronavirus pandemic wreaked economic havoc, the U.S. economy was firing on all cylinders. Although the TCJA is not solely responsible for the record-low unemployment rate and the huge increase in median household income during that period, it certainly played a large part. To be fair, lower regulations also played a prominent role.
Cutting to the chase, 50 Cent’s commonsense analysis of Joe Biden’s plan to hike taxes ought to be a wake-up call for all Americans.
In 2003, 50 Cent released his breakthrough album, Get Rich or Die Tryin’. If Joe Biden’s tax hikes become law, that would be truer than ever.
Chris Talgo ([email protected]) is an editor at The Heartland Institute.