Elon Musk May Not Be Able To Evade Taxes Anymore And He Is Not Happy
Elon Musk is not happy about the proposition of him…
Elon Musk is not happy about the proposition of him being taxed more. The richest man on the planet, Musk has paid no personal tax since the year 2018.
“Eventually, they run out of other people’s money and then they come for you,” he sub-tweeted on a template aimed at politicians in critique of a proposal from congressional Democrats.
This proposal, if taken forward, would change the way that the rich are taxed. Joe Biden’s Build Back Better plan, one idea a number of lawmakers have been in agreement that the ultra-wealthy need to be taxed differently. Drafted by Senator Ron Wyden, the plan, released on Wednesday, would raise hundreds of billions of dollars from approximately 700 billionaires by requiring them to pay taxes on the increase in value of their publicly traded assets, like stocks and bonds, while non-tradable assets, such as real estate and closely-held businesses, would be taxed when they are sold.
Many think this to be in bad taste, given that the man made $36 billion in a day, quite recently. It is also a fact that for a huge chunk of his net worth, he has the government to thank. For many years it used government incentives for people to buy electric vehicles. Much of its current profits are owing to the sale of government regulatory credits to other, traditional automakers. The government has also contributed to the immense success of SpaceX with monetary contributions and collaborations.
The new policy is more a patching-up of a loophole exploited by the wealthy. The billionaires do not live off of their billions. They keep value in their companies or assets, avoid taxes by never selling them and instead borrow spending money from creditors. This is done by one generation after the other and allows the rich to get away without paying any taxes.