Last Updated on May 4, 2023 by admin
Rajkotupdates.News : Elon Musk Pay 11 Billion In Taxes is our today’s topic. Elon Musk will likely face the largest tax bill in U.S. history this year. “For those wondering, I will pay over $11 billion in taxes this year,” tweeted the Tesla CEO on Monday.
Musk had sold $14 billion worth of Tesla stock since early November when he asked his Twitter followers whether he should sell 10 percent of his holdings. The overwhelming response to that poll was “yes.”
Rajkotupdates.News : Elon Musk Pay 11 Billion In Taxes
But Musk would have likely begun selling regardless. This is due to the enormous tax bill he faces for Tesla stock options.
Elon Musk will pay a record-setting $12 billion in taxes.
Musk’s 2012-granted stock options will expire in August of next year. To exercise them, he must pay capital gains tax.
Instead of receiving a salary or cash bonus, Musk’s wealth is derived from stock awards and Tesla’s share price increase.
Even though Tesla shares have declined in value since Musk’s Twitter poll, the stock is up 28% year-to-date.
Musk can borrow money using his company’s stock as collateral when he needs cash. Nevertheless, some politicians have criticized this practice as a tax loophole for the extremely wealthy.
ProPublica published an investigation earlier this year revealing that Musk and several other billionaires did not pay federal income taxes in 2018.
According to ProPublica, Musk paid $455 million in taxes on $1.52 billion in income between 2014 and 2018, despite his wealth increasing by $13.9 billion.
Forbes estimates that Musk’s net worth exceeds $244 billion, making him the world’s richest man.
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Musk could have waited until the following year to pay the tax bill, but he would have risked higher tax rates under the Democrats’ Build Back Better bill.
Recent Twitter exchanges between the Tesla and SpaceX CEO and prominent Democrats have centered on tax avoidance.
Musk responded to Senator Elizabeth Warren’s criticism of Time Magazine’s decision to name him Person of the Year by tweeting, “I will pay more taxes than any American in history this year.”
And if Musk pays the enormous sum he promised, there is a chance he is correct. Hope you enjoy reading our article Rajkotupdates.News : Elon Musk Pay 11 Billion In Taxes.
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