50 Cent Does Not Want to Pay More in Taxes
50 Cent shocked the world yesterday when he announced his endorsement of President Donald Trump.
“I don’t care Trump doesn’t like black people 62% are you out of ya f****** mind.” — 50 Cent via Twitter
This announcement came after 50 Cent viewed a graphic on TV from CNBC detailing how Americans making over $400,000 annually would be affected by Former Vice President Joe Biden’s tax plan.
Now, this tax raise may affect 50 Cent and the other wealthy Americans making over $400,000, but it won’t mean much to the rest of the country.
The 62% increase is extremely misleading as well. Here’s the thing. Combined taxes for California, New Jersey, New York, and New York City would be around 60%. The 62% rate of New York City seemed to catch 50 Cent’s eye. This rate includes the addition of both state and local statutory rates.
But here’s the deal. Nobody pays the full statutory rate. Wealthy taxpayers benefit from loopholes, deductions, credits, and offsets. As we have seen, our billionaire president sometimes only pays $750 for the year in taxes due to many loopholes.
The top 1% of earners, those making over $400,000 currently pay an average tax rate of 26.8%. This is after you add in the usual deductions and credits. Biden’s plan raises that to 39.8%. In the states of California and New York, the combined tax rate including state and federal taxes would be around 53%. It’s 13% higher than the roughly 40% they pay today.
Furthermore, Trump’s tax revisions put a $10,000 cap on state and local tax deductions. A Democratic Senate would almost surely remove this cap, bringing their rates even lower.
To sum it all up, there are only a few states in which the wealthiest 1% of Americans would pay around 53% in combined taxes under Biden’s plan. Most states would pay less. And the rest of the 99% of us will not see any increase in our taxes.
Here are some of the breaks Biden’s tax plan has to offer most Americans:
- A temporary expanded child tax credit from $2,000 to $3,000. For children under six, it goes up to a $3,600 credit.
- Up to $8,000 credit for help with child care.
- A refundable tax credit for health insurance premiums.
- $15,000 credit for first time home buyers.
Now whether Biden’s tax plan will either help or hurt the economy is a different matter and it’s being argued on both sides. It’s interesting to note that Moody’s Analytics predicts if Biden wins and the House and Senate are Democratic, the nation’s gross domestic product would be $960 billion larger after four years.
I am not a tax expert so take this information with a word of caution. But it only takes a little bit of research to see that 50 Cent’s tax worries won’t apply to the vast majority of us.
50 Cent may be deeply concerned about his personal wealth, but trust me, he’s not thinking about yours.