Elon Musk has spoken out in anger at the fact that billionaires will have to pay more tax under a plan by the Biden administration. Musk claims instead that he would use the money to go to Mars.
The new tax bill put forward by Democrats will mean people like Musk may be taxed at 23% of assets, which would create billions of dollars for funding education, healthcare and other social policies.
The new billionaire tax plan would affect just around 800 Americans, and the current administration was elected on the basis that it would make the US tax system fairer after former president Trump's huge tax cuts for the wealthiest. The tax applies to those who earn $100 million 3 years in a row or who have over $1 billion in assets. Unlike previous systems which taxed income, the new tax code will tax assets, which is a significant shift in the way US tax is calculated.
It is believed that the new tax plans will cost Musk, the world's richest man and founder of Tesla and SpaceX, around $50 billion, while Amazon founder Jeff Bezos will pay around $44 billion.
Musk made his feelings clear on twitter, saying:
"According to their own estimates, this tax only covers 10% of the $3.5 trillion spending bill. Where will the other 90% come from? The answer is you."
According to their own estimates, this tax only covers ~10% of the $3.5 trillion spending bill.
— Elon Musk (@elonmusk) October 27, 2021
Where will the other 90% come from?
The answer is you.
And:
"US national debt is $28,900 billion or ~$229k per taxpayer. Even taxing all "billionaires" at 100% would only make a small dent in that number, so obviously the rest must come from the general public. This is basic math. Spending is the real problem."
Musk had also stated:
"Eventually they run out of other people's money and then they come for you. Who is best at capital allocation — government or entrepreneurs — is indeed what it comes down to. The tricksters will conflate capital allocation with consumption."
Others will be disgusted by Musk, who believes that he should be able to hoard vast wealth while other Americans have to pay their fair share of tax, and many will believe that Musk does not really care about anything other than advancing his own personal wealth, even if it means US citizens going without basic healthcare and a decent education.
[Based on reporting by: IFL Science]
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