Elon Musk, the founder of Tesla and SpaceX, and the richest person in the world, has tweeted that he will pay $11 billion in tax this year as a result of changes to the tax regime under the Biden administration.
Musk made the statement in response to a tweet from Democratic Senator Elizabeth Warren, regarded as being on the left of the party, who said:
"Let's change the rigged tax code so The Person of the Year will actually pay taxes and stop freeloading off everyone else."
Let’s change the rigged tax code so The Person of the Year will actually pay taxes and stop freeloading off everyone else. https://t.co/jqQxL9Run6
— Elizabeth Warren (@SenWarren) December 13, 2021
To which Musk responded:
"For those wondering, I will pay over $11bn in taxes this year."
For those wondering, I will pay over $11 billion in taxes this year
— Elon Musk (@elonmusk) December 20, 2021
This $11 billion will however be far lower as a percentage of income than what most Americans pay in tax, meaning people with regular jobs are actually paying more of their total income compared to Mr. Musk.
The move comes as Musk was named as Time Person of the Year 2021.
Musk's wealth is estimated at $243bn, while Tesla is worth around $1tn and SpaceX is worth $100bn, meaning the $11 billion will just be a drop in the ocean.
Since Joe Biden became president, the new administration has attempted to create new tax proposals that mean that billionaires will be paying more of their vast wealth. At present many of the wealthiest people in America pay almost no tax. This is because instead of paying themselves a salary, they live off loans against which the stock value of their companies is held as collateral. The Biden regime hopes to create tax which means this loophole can no longer be used.
Columbia University professor Robert Willens spoke to the BBC regarding Musk's tax position, and said:
"[Mr Musk] probably felt it would be prudent to generate as much taxable income in 2021 as possible, on the theory that income in 2022 might be taxed at higher rates."
Musk's company, Tesla, has in the last few years moved from California to the state of Texas in order to avoid paying higher Californian taxes.
[Based on reporting by: BBC]
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