Elon Musk Reacts to Criticism That He Doesn’t Pay Federal Income Tax

Elon Musk Reacts to Criticism That He Doesn’t Pay Federal Income Tax

Tesla and SpaceX CEO Elon Musk life pretty modestly by billionaire benchmarks. Filip Singer-Pool/Getty Photos

A bombshell investigation of newly uncovered IRS details by ProPublica on Tuesday uncovered that Elon Musk, alongside with more of America’s leading billionaires, compensated pretty minor cash flow tax in current many years. The publication explained the Musk responded to an first press query with a lone issue mark devoid of any additional elaboration. But the Tesla CEO broke silence on Wednesday when his leading Twitter admirers prompted him to examine his tax circumstance.

The ProPublica report alleged that Musk, who’s really worth $152 billion, paid much less than $70,000 in federal money tax in 2015 and 2017, and very little at all in 2018. He did appear to have paid his owing in 2016 when he exercised far more than $1 billion in inventory selections. But his overall “true tax rate” for the five-yr interval in between 2014 and 2018, calculated as the amount of tax paid divided by enhance in net worthy of, is only 3.27 p.c, considerably lower than an regular American household.

Musk’s defenders challenged ProPublica’s calculation. “If ‘tax the wealthy’ comes about (which it won’t), then Elon Musk would have to have to promote billion pounds really worth of Tesla shares,” tweeted Pranay Pathole, an Indian engineer whom Musk often interacts with on Twitter. “This would be terrible for the inventory selling price and could damage a lot of retail shareholders.”

“Exactly,” Musk responded. “[The] only time I sell Tesla inventory is when my stock alternatives are expiring and I have no choice.”

He added, “Btw, I will continue to shell out cash flow taxes in California proportionate to my time in [the] point out, which is and will be substantial.”

The ProPublica investigation didn’t involve info on state income tax.

In May perhaps 2020, Musk tweeted that he’s likely to “sell almost all bodily possessions,” like his houses, so that he could target on running Tesla, SpaceX and his other ventures.

He verified on Wednesday that he’d bought all but just one household. “Yes, bought my homes other than for one particular in Bay Location that is rented out for events,” he tweeted. “Working on sustainable electricity for Earth with Tesla and protecting upcoming of consciousness by making existence multi-planetary with SpaceX. Also AI risk mitigation with Neuralink and repairing site visitors with Dull.”

 

Elon Musk Explains Why He Pays So Little Income Tax on His $152 Billion Fortune