If Joe Biden becomes president and rams through the massive tax hikes he’s promised, rapper 50 Cent won’t be the only New Yorker to flee. And the exodus of high-income taxpayers would leave city and state finances worse off than ever.
“Yeah, i don’t want to be 20cent. 62% is a very, very,bad idea,” the Queens-born artist tweeted Tuesday. He was referring to a report that New Yorkers could face combined state and federal marginal tax rates totaling 58 percent — 62 percent in the city — under Biden’s tax plan.
On Monday, the rapper urged voters to back President Trump and vowed to leave New York if taxes rose under Biden: “WHAT THE F - - K!,” he tweeted. “(VOTE for TRUMP) IM OUT, F - – K NEW YORK.”
Who would blame him? Shootings have surged. The city doesn’t even try to help the mentally ill homeless. Even the Knicks “never win,” 50 Cent added.
Tax hikes could be the last straw for many. New York, after all, already pilfers a larger share of residents’ income than any other state, USA Today reports. In many states, the income tax rate is . . . zero.
Yet Biden is planning $3.05 trillion in new taxes over 10 years, including hikes on folks making over $400,000. And Democrats in New York are drooling at the idea of hiking state taxes on the wealthy. Just how do you think the wealthy will react to all that?
Democrats in high-tax states hope a President Biden would restore SALT, the state- and local-tax deduction. But to make his numbers work, he’d then have to bring back the Alternative Minimum Tax, too — which erases the benefits of SALT for most. The rich would still have every reason to flee.
“Raising taxes on the highest incomes to raise revenues in the short term will only accelerate the erosion of our tax base in the long run,” fiscal expert E.J. McMahon testified last February — before COVID, the crime spike and a declining quality of life prompted many New Yorkers to skedaddle, at least temporarily.
Even Gov. Cuomo’s rich pals tell him they’d save on taxes by staying away. Yet if they do, they’ll pay nothing to the city or state — leaving both worse off.
Meanwhile, the top 1 percent already contribute 40 percent of the state’s tax revenue and 47 percent of the city’s. And Biden’s tax hikes would clobber the US economy, shaving GDP by 1.47 percent over the long term and costing average taxpayers 1.7 percent of after-tax income, the Tax Foundation reports.
Could anything be more self-defeating?
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