A sizzling potato: One thing that Elon Musk’s detractors usually wish to level out is the comparatively small quantity of tax he’s paid up to now. In response, the Tesla boss has introduced that he’ll pay over $11 billion in taxes this yr, greater than any American in historical past.
A ProPublica report again in June discovered that many billionaires similar to Musk and Jeff Bezos pay little to no federal taxes utilizing utterly authorized means. Musk reportedly averted paying any federal revenue tax in 2018 whereas handing over simply $68,000 in 2015 and $65,000 in 2017. And regardless of his wealth rising by $13.9 billion between 2014 and 2018, he reported $1.52 billion in revenue and paid $455 million in taxes.
For these questioning, I’ll pay over $11 billion in taxes this yr
— Elon Musk (@elonmusk) December 20, 2021
Musk’s low tax funds have drawn loads of criticism and had been highlighted by many when he turned Time’s particular person of the yr final week, however he’s responded with a tweet that reads, “For these questioning, I’ll pay over $11 billion in taxes this yr.”
CNBC final week reported that Musk faces “the only largest tax invoice ever,” having already paid $7 billion in state and federal taxes to this point this yr, with an extra $5 billion cost arriving by January 1.
And if you happen to opened your eyes for two seconds, you’ll notice I’ll pay extra taxes than any American in historical past this yr
— Elon Musk (@elonmusk) December 14, 2021
Many billionaires are capable of pay comparatively little tax as a result of the federal government solely taxes what it defines as revenue, so when the worth of the inventory they maintain will increase, their wealth is not taxed. They will then borrow towards the inventory to pay residing bills. However Musk began promoting off his shares final month following the outcomes of a Twitter ballot urging him to promote 10% of his Tesla inventory.
CNBC did be aware, nevertheless, that Musk might have offered his shares whatever the ballot consequence as 22.8 million shares he was awarded as inventory choices in 2012 are set to run out in August subsequent yr. With the intention to train them, he has to pay revenue tax on the acquire, however ready till subsequent yr would seemingly imply paying greater tax charges below the Democrats’ Construct Again Higher invoice.