Billionaire Elon Musk uses Twitter poll to decide if he should pay taxes

0

In the world richest man (Where second richest, depending on who you ask) used a Twitter poll to decide whether or not he should pay taxes. Elon Musk, who currently goes under the “Lorde Edge” Twitter account, took to Twitter on Saturday to ask his followers if he should sell Tesla stock so he can “personally” pay taxes.

SpaceX CEO, estimated at over $300 billionpromised that he would respect the results of his poll, regardless of the outcome.

“There’s been a lot of talk lately about unrealized gains as a means of tax evasion, so I’m offering to sell 10% of my Tesla stock,” said Elon, whose value jumped $36 billion in a single day last month, wrote on Twitter. “Do you support that?”

Final results showed 58% in favor of the move, with 42% against. Musk – who paid $0 in federal income tax in 2018, according to a analysis by ProPublica – has since indicated that he is still ready to accept the result of the poll. Frankfurt-listed Tesla shares fell about 3% after poll results, according to Reuters.

Musk notes that “I don’t get any salary or cash bonuses. I only have stocks, so the only way I can personally pay taxes is to sell stocks.” Although some on social media have praised him for his willingness to sell stocks to pay more taxes, others – including US Senator Ron Wyden – believe Twitter polls should play no role. in the tax system.

“Whether or not the richest man in the world pays taxes shouldn’t depend on the results of a Twitter poll,” wyden wrote:. “It’s time for the billionaires’ income tax.”

“Why does your pp look like he came?” Elon Musk responded.

The “billionaire tax” would see US taxpayers with assets worth more than $1 billion have their stocks and other assets assessed each year, whether or not they sold the assets, and taxed accordingly. Currently, the owners of these assets are only taxed when the assets are sold and profits are recognized. Stocks and assets that remain unsold but increase in value are called “unrealized capital gains”, and this is what will be taxed if the billionaires tax passes.

Each year, Mr. Bezos earns a salary of around $80,000 and over the period 2010-2018, for example, his unrealized (or accumulated) capital gains on his Amazon shares averaged more than $10 billion per year. .

“Currently, in this simplified example, if Mr. Bezos does not sell any of his Amazon shares in a given year, income tax ignores the $10 billion gain, and he is effectively taxed as a person. of the middle class earning $80,000 a year,” Director of Federal Tax Policy at the Center on Budget and Policy Priorities and proponent of tax explained on Twitter.

“This happens because the tax code currently only treats as income capital gains that have been ‘realized’ – when an asset is sold – and does not treat ‘unrealized’ gains as income. Proponents of a billionaire tax, like myself, say it doesn’t make sense to tax Jeff Bezos as if he were a middle-class person with $80,000 in income.”

Until that loophole is closed, perhaps Twitter polls will fill the void.

Share.

About Author

Comments are closed.