rajkotupdates.news : Elon Musk pay 11 billion in taxes; The richest man in the world, Elon Musk, promised to pay taxes on 11 billion dollars. Elon Musk, the founder of SpaceX and Tesla, has revealed the tax amount he will be paying in 2021. This was what he posted to his Twitter.
He said, “For those who are curious, I will pay more than $11 billion in tax,” Forbes currently estimates Musk’s net worth to be $244.2 billion at the time of writing. This statement was part of the ongoing Internet skirmish between Senator Elizabeth Warren and Mr. Musk. The senator asked Tesla’s head to pay more taxes last week. She tweeted, “Let’s fix the wrong tax code so the ‘Person Of The Year’ pays taxes and isn’t a freeloader.” Mr. Musk responded that he would be paying more taxes this year than any American in American history.
This high tax burden is explained by Elon Musk’s decision to start exercising stock options in November this year. These options pay for Musk’s work at Tesla. These options allow him to purchase Tesla shares at market price, which is usually lower than when they are purchased. You can read the full story at Rajkotupdates.news.
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ProPublica June 2021 Release
After ProPublica published data on income taxes for US billionaires in June 2021 (US Internal Revenue Service), the US opened an inquiry. This led to demands for a wealth tax. According to reports, the income tax paid between 2014-2018 by the richest Americans is only a fraction of their overall wealth.
Musk’s wealth increased by $13.9 billion in five years. Revenues reached $1.52 Billion and the income tax was $455 Million.
Musk paid 3.27% of his earnings in taxes.
Despite the fact that billionaires are not protected by law, the public outrage at the publication of such information was overwhelming.
Total, Musk received 25.5 Million Options back in 2012. He also had to deliver Tesla to certain indicators. Options are exempt from tax. They have a limited share buyback period that expires in August 2022. So Mr. Musk started buying back shares last month. Their value is subject to income tax. For Elon Musk, the tax rate for income is 40.8%. Additionally, Elon Musk may be subject to income tax in California, which is the highest state in the US at 12%. To pay the expenses, Musk sold a portion of the shares he bought, bailing out $ 8.8 billion.
Elon Musk is the only person who can afford such high taxes.
Musk isn’t the only American billionaire that could be subject to high taxes due to the sale securities. After a sharp rise in stock value and the possibility of higher taxes in 2022, the US’s biggest tycoons are actively selling their stocks. Jeff Bezos, Amazon founder, was the second-richest person on the planet. Mark Zuckerberg sold $4.5 billion of Meta (formerly Facebook shares) shares to make $9 billion.