Joe Biden at the first presidential debate in Cleveland, Ohio on Tuesday, Sept. 29, 2020. (C-SPAN video screenshot)
If Joe Biden is elected president, his proposed tax plan will increase the combined statutory rate in California to 62% for people making more than $400,000, the highest rate in three decades, according to a tax group.
The Tax Foundation, a low-tax advocacy group, said that in New Jersey, the combined statutory rates would also likely be above 60% for those earning more than $1 million, and about 58.2% in New York City, DailyMail.com reported.
Already, rapper 50 Cent has reacted to the news, announcing he will vote for President Trump because he doesn't want to become "20 Cent."
On Twitter, he called a 62% rate "a very bad idea."
Yeah, i don’t want to be 20cent. 62% is a very, very,bad idea.
i don’t like it ! #abcforlife nov 18 #starzgettheapp pic.twitter.com/y9TsSs0o6Q
— 50cent (@50cent) October 20, 2020
The statutory tax rate, DailyMail.com explained, is the rate on taxable income within a particular tax bracket while the effective tax rate is the percentage of income actually paid, taking into account deductions and exemptions.
Under Biden's plan, the effective tax rate for those with incomes of more than $400,000 per year would increase to 39.8% from 26.8%.
Biden also proposes a payroll tax of 12.4% on salaries over $400,000 that would be split between the employer and the employee.
The Tax Foundation points out such increases often are passed on to the employee. It that happens, the group says, the top combined statutory rates might soar to more than 65% in California, 62.9% in New Jersey and 64.7% in New York.
WND noted in June that when a Democratic former vice president running against a tax-cutting Republican incumbent vowed to the American people that, if elected, he would raise their taxes, it didn't turn out well for the Democrat.
Walter Mondale won a mere 13 electoral votes while President Ronald Reagan took 525.
At a virtual event in June, Biden told potential donors he would end most of President Trump's multitrillion-dollar tax cuts, even though "a lot of you may not like that."
Biden said that prior to the coronavirus lockdown, Trump's "irresponsible sugar-high tax cuts had already pushed us into a trillion-dollar deficit."
"I'm going to get rid of the bulk of Trump's $2 trillion tax cut," Biden said, "and a lot of you may not like that, but I'm going to close loopholes like capital gains and stepped-up basis."
Biden also vowed to raise the corporate tax rate to 28%. The Trump plan reduced corporate taxes to 21% from 35%.
In 1984, the moderate Mondale also said he would raise taxes only on the wealthy.
"Mr. Reagan will raise taxes, and so will I," he said in his speech accepting the Democratic nomination. "He won't tell you. I just did."
The post Joe Biden's tax plan would be highest increase in 3 decades appeared first on WND.
