Elon Musk says he can pay over $15b in taxes this yr

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Mr Elon Musk, the world’s richest individual and chief government of Tesla, mentioned on Twitter that he can pay greater than US$11 billion (S$15 billion) in taxes this yr, an quantity that might represent a file fee to the United States Internal Revenue Service.

The billionaire might face a tax invoice of greater than US$10 billion for this yr if he workouts all his share choices as a result of expire subsequent yr, calculations final week by Bloomberg News confirmed.

The unusually excessive levy comes after Mr Musk exercised virtually 15 million choices and offered tens of millions of shares to cowl the taxes associated to these transactions.

That was following a Twitter ballot final month when he requested followers whether or not he ought to promote 10 per cent of his stake within the electrical carmaker, whose shares have rocketed greater than 2,300 per cent over the previous 5 years.

A report by ProPublica in June mentioned Mr Musk paid little earnings tax relative to his outsize wealth. But he has pushed again in opposition to that characterisation, saying he doesn’t draw a wage from both SpaceX or Tesla, and pays an efficient tax price of 53 per cent on inventory choices he workouts.

He added that he expects that tax price to extend subsequent yr.

Mr Musk earlier this month mentioned he can pay extra taxes than any American in historical past this yr. That was in response to a different tweet from Massachusetts Senator Elizabeth Warren, who used Mr Musk’s Time Magazine “Person of the Year” accolade to name him out on his taxes.

His newest Twitter spat with the Massachusetts senator started after Ms Warren blasted the tax code for being “rigged” and requested to vary it “so the Person of the Year will actually pay taxes and stop freeloading off everyone else”.

Even a US$10 billion fee is only a fraction of Mr Musk’s total wealth. His web value is 1 / 4 of a trillion {dollars} on the Bloomberg Billionaires Index, having risen by US$95 billion to this point this yr.

Mr Musk shouldn’t be the one billionaire more likely to pay an enormous tax invoice this yr. Stock gross sales by the highest US billionaires have greater than doubled this yr, because the richest Americans unload shares after a run-up in inventory valuations and earlier than a possible tax hike subsequent yr.

So far this yr, Mr Jeff Bezos – the world’s second-richest individual – has offered greater than US$9 billion in Amazon.com inventory, and Mr Mark Zuckerberg has liquidated US$4.5 billion in shares of Meta Platforms – previously generally known as Facebook.

Both males are more likely to pay a decrease tax price than Mr Musk, partly as a result of their gross sales are designed to fund charitable endeavours, which permit tax deductions.

BLOOMBERG

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