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Webb: Bidenomics and 50 Cent lesson

Webb: Bidenomics and 50 Cent lesson
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Joe Biden promises to raise $4 trillion in the next decade from the wallets of the rich in America.

It can’t help Biden with the Black vote when rapper 50 Cent tweets in part “VOTE forTRUMP” and more colorful wording plus an image of high combined tax rates in states like California, New Jersey and New York, as well as New York City. Simple, he didn’t want to lose up to 62 percent of his income and become 19 Cent.

The left-leaning Urban–Brookings Tax Policy Center has analyzed Biden’s plan and combined with his proposals determined that he would raise only $2.4 trillion over a decade. This is approximately $1.6 trillion less than his policies need. As the policy evolution continues, his proposals get more expensive and your wallets will get lighter.

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In the Biden plan, approximately $758 billion would be generated from higher income and payroll taxes on people earning at least $400,000 annually. Also, $1.4 trillion would come from higher taxes on businesses including a necessary raise in the corporate tax rate to 28 percent and a tax on foreign profits.

There are many more components to the Biden plan like tax credits for households and businesses that would have to be paid for, a tax credit for companies to onshore jobs to the United States. Let’s not forget subsidies for companies to invest in manufacturing. Do you remember the Obama-Biden years of Solyndra and shovel ready jobs that were not so shovel ready?

Key question: Where does the rest of the money come from?

Answer: All of us. And those of you who don’t think you will be paying are going to be sadly mistaken.

If the top 1 percent of earners who bring in more than $700,000 in annual income are asked to pay over $265,000 more on average, where do you think the taxed money would’ve been spent or invested? When money is removed from the economy, more areas of the economy notice the vacuum than see the benefits.

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High income earners have already begun to adjust their investment structures and an old rule is still true today that money goes where it is treated well and in this case that’s in the form of tax shelters.

According to a Wall Street Journal editorial board report, the Biden agenda would reduce real GDP per capita by more than 8 percent which could result in 4.9 million fewer working Americans. The analysis questions whether Biden’s policies will nurture the already strong recovery from the coronavirus pandemic or slow it down as the Obama-Biden policies did after the 2009 recession. A resulting loss in the incentive to work and reduced productivity across the economy would likely increase poverty rates. Biden is repeating the same old progressive line of subsidizing industry or people at the cost of the very industries or people being subsidized.

To those who think you won’t pay a cost because it’s all about high income earners, the evil wealthy, according to the Democratic Party, what happens when wealth is removed from the people who invest in industries directly, provide loans and investment capital through banking or consume the goods and services that require a workforce? The answer is that lower- to middle-income Americans historically lose the opportunity to rise above their current economic situation. Upward mobility is stymied.

The lesson of 50 Cent’s declaration of his vote is not just because he doesn’t want to pay a top tax rate, that when combined could rise to 62 percent, but more that Americans should pay attention to what happens when their money is taken away from them by high tax policies.

Time for Main Street to pay attention and anyone who wants their piece of the American economic pie. I have a simple question, did a poor person or person who is headed in a negative direction economically ever give you a job?

For the person who has an idea and needs investors or partners, where does your best opportunity for success reside? Are you going to get help from someone who is struggling or from someone who has a measure of success and will benefit from helping you achieve yours?

Politicians, institutes of higher learning and greater thought, television pundits and political operatives can tell you how it should work but the real world is a bit starker and more unforgiving.

Forget Biden for the moment. He will only be president if elected for four or eight years. The policies of presidents outlast them when it comes to economics because they don’t terminate on election or inauguration day.

An American is free to cast a vote for any candidate, but I suggest you examine the policies and decide based on success not proposals.

Webb is host of “The David Webb Show” on SiriusXM Patriot 125, host of “Reality Check with David Webb” on Fox Nation, a Fox News contributor and a frequent television commentator. His column appears twice a month in The Hill.