All right guys, I was about to head to dinner but I decided to hop on my Live because I saw, I know I’m about 3 hours late, that 50 Cent basically just posted on his Instagram and Twitter, a couple of hours ago, that he’s voting for Trump and the reasons why. Quick little screenshot he put, of the tax rates that are going up in various states and what it would look like under Joe Biden, rather, which is something like 60% in New York, 62% in California. I mean, these numbers are insane, we’ve never seen them.
I really quickly want to just say something to defend 50 Cent, because, I am just seeing so much ignorance in his comments, from majority of black people saying they’re done with him, and it’s because he’s rich and he’s betrayed them. No, it’s because he’s smart and you’re not. Okay, and I’m going to explain to you, now, what you don’t understand about what he’s saying, because tax cuts are not for the rich and this is what, this is what happens, this lack of understanding is what happens when a school system gets washed of actual education. So instead of learning about taxes, and about tax revenue, and tax rates, and how it works, you guys are learning about Black Lives Matter and white privilege, and why you should be sad because you’re black, and how it hurts, and here’s your safe space. None of you are learning anything. You have no idea what you’re talking about. You are really, just give yourself an old-school no fives, okay. If you actually believe that Joe Biden is only going to raise taxes for people that are making more than $400,000, because what it shows is that you, you, you have to be extremely ignorant about economics, okay, just extremely ignorant about economics.
So first and foremost, there’s a packet that I want you to read, an essay by Thomas Sowell called Trickle Down Theory And Tax Cuts For The Rich. I have it somewhere behind me. I’m going to grab it in a second so you can go read it and understand what tax cuts for the rich actually means, because it’s the only thing that actually helps poor people with their taxes. Poor people pay less taxes, okay, when rich people pay less taxes. Let me explain to you how that works, okay.
Trickle Down Theory And Tax Cuts For The Rich
We fight for and against not men and things as they are, but for and against the caricatures we make of them. ~ J.A. Schumpeter
At various times and places, particular individuals have argued that existing tax rates are so high that the government could collect more tax revenues if it lowered those tax rates, because the changed incentives would lead to more economic activity, resulting in more tax revenues out of rising incomes, even though the tax rate was lowered. This is clearly a testable hypothesis that people might argue for or against, on either empirical or analytical grounds. But that is seldom what happens.
“What actually followed the cuts in tax rates in the 1920s were rising output, rising employment to produce that output, rising incomes as a result and rising tax revenues for the government because of the rising incomes, even though the tax rates had been lowered. Another consequence was that people in higher income brackets not only paid a larger total amount of taxes, but a higher percentage of all taxes, after what have been called ‘tax cuts for the rich.'”Sowell_TrickleDown_FINAL