We are two weeks away from Election Day. Wall Street is saying a Biden win would be bad for corporation, while others think it will be business as usual. Kevin O’Leary aka Mr. Wonderful of Shark Tank thinks if Biden wins, he would b be forced to enact a $2 trillion stimulus plan due to COVID-19 wrecking the economy. And because of this, his proposed tax plan would have to be pushed off at least to the 2nd half of his term. And by that time, his focus would be on trying to win a 2nd term.
Back in 2017, Trump signed off on a massive overhaul of the tax code called the Tax Cuts and Jobs Act which saw everyone’s individual income tax rates lowered. Meanwhile, Biden hasn’t specifically proposed an increase in taxes on individuals making less than $400,000, but Biden is proposing raising the top individual income tax rate to 39.6% from its current level of 37%.
Biden is also proposing to increase payroll taxes for those high-earners. Meanwhile, Trump, is calling for a temporary suspension of the payroll tax for workers earning less than $104,000 on an annual basis.
Biden is also proposing to raise the capital gains rate to 39.6% for taxpayers with income over $1 million. Trump is now considering a capital gains tax cut.
These are just a few of the reasons 50 Cent is voting for Trump.
Rapper 50 Cent on Monday told his followers to vote for President Trump after seeing a graphic of Democratic nominee Joe Biden's tax plan broadcast on TV.
The rapper, whose real name is Curtis Jackson, reacted to a CNBC graphic showing how much people earning more than $400,000 would have to pay in taxes under the Biden administration. According to CNBC, the combined federal and state tax rate for top earners in New York state would be 58%, New Jersey at 60%, California at 62.6% and New York City at 62%. The final stat apparently upset the hip-hop mogul.
But according to Goldman Sachs, economist Jan Hatzius, Biden campaign proposals’ would boost growth from fiscal stimulus that would outweigh the negative effects of tax increases. This might be why the Smart Money loaded up on SPY calls options at the 355 strike price that expire in November.
I'm personally still on the sidelines and plan on remaining on the sidelines for some time. However there are billions of dollars just itching to get back into the Markets. So potentially, whoever wins, we could see a selloff, before a new leg higher.