Rajkotupdates.News : Elon Musk Pay 11 Billion In Taxes
Elon Musk may have to pay the largest tax bill in U.S. history this year.
The Tesla CEO tweeted on Monday, “For those who are curious, I will pay more than $11 billion in taxes this year.”
Since early November, when he asked his Twitter followers if he should sell 10% of his holdings, Musk has sold $14 billion worth of Tesla stock. The overwhelming answer to that poll was “yes.”
But Musk probably would have started selling even if he hadn’t. He has a huge tax bill because he has Tesla stock options.
Rajkotupdates.News : Elon Musk Pay 11 Billion In Taxes
Elon Musk will have to pay a record $12 billion tax bill.
Musk was given stock options in 2012, which will run out in August next year. He has to pay income tax on the gain to use them.
Musk doesn’t get a salary or a cash bonus. Instead, he gets stock awards and makes money when the price of Tesla shares goes up.
Even though Tesla shares have decreased since Musk’s Twitter poll, they are still very valuable. Year-to-date, the stock has gone up 28%.
When Musk needs cash, he can borrow money from his company’s stock as collateral. But some politicians have said this is a way for the rich to avoid paying taxes.
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ProPublica did an investigation earlier this year showing that Musk and several other billionaires did not pay federal income taxes in 2018.
ProPublica says that between 2014 and 2018, Musk paid $455 million in taxes on $1.52 billion in income, even though his wealth grew by $13.9 billion.
Forbes says that, on paper, Musk is worth more than $244 billion. This makes him the richest man in the world.
Musk could have waited until next year to pay the tax bill, but under the Democrats’ Build Back Better bill, he might have had to pay more taxes.
The head of Tesla and SpaceX has been arguing with well-known Democrats on Twitter about how to avoid paying taxes.
Last week, he responded to Senator Elizabeth Warren after she questioned Time Magazine’s choice of Musk as its Person of the Year by tweeting, “I will pay more taxes than any American in history this year.”
And if Musk does pay the huge amount he said he would, he may have been right.
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