Elon Musk attacks Democrats’ Billionaire Tax plan

President Biden’s proposed tax on billionaires’ unrealized profits, which would target ultra-wealthy entrepreneurs like as Tesla CEO Elon Musk and Amazon founder Jeff Bezos, has been attacked by Tesla CEO Elon Musk.

Musk, whose fortune increased by more than $36 billion on Monday, bringing his total net worth to a stunning $289 billion, took to Twitter to criticize the Democratic tax proposal.

Musk responded to a tweet that encouraged people to write to their political officials to express their opposition to the notion by saying, “Exactly. They eventually run out of other people’s money, at which point they turn their attention to you.”

A tax on unrealized gains on billionaires’ assets, such as stocks and real estate, would be imposed under the idea, which would most likely apply to fewer than 1,000 of the nation’s richest people. People’s stock ownership is presently only subject to taxation when they elect to sell their shares.

A tax scheme of this kind has long been opposed by Republicans, who argue that it would result in a massive bureaucracy and would be a disincentive to investment.

Musk, whose fortune is almost completely dependent on his ownership of shares in his firms, Tesla, SpaceX, and The Boring Company, would be especially sensitive to the tax proposal. Tesla, SpaceX, and The Boring Company are among the companies that would be most exposed.

Earlier this year, stolen tax papers acquired by ProPublica revealed that billionaires such as Musk, Bezos, and other billionaires were able to avoid paying taxes by investing the majority of their assets in equities.

That inquiry has already elicited a response from Musk, who called it “extremely deceptive” and said that he does not “really earn a salary” from his firms.

Musk said in September at the Code Conference, hosted by Vox Media, that “my monetary remuneration is practically nil.”

His fortune, he said, is related to stock options in his firms, which allow him the opportunity to purchase or sell shares of Tesla and his other companies at a certain price, as well as in other investments.

In addition, I have some options that expire next year, so a large block of options will sell in [the fourth quarter of 2021] – they’ll have to sell or the options will expire.”

When he eventually sells those shares, he will be subject to a “top marginal tax rate of 53 percent,” with the rate rising to 57 percent the next year, according to him.

In his words, “the vast bulk of what [stock options] I sell will be subject to taxation.”

In recent years, Tesla has been one of the most popular companies on the stock market. Over the previous five years, the stock has increased by about 2,500 percent.

After Hertz made a large order for 100,000 of the electric vehicles on Monday, the company’s entire market capitalization surpassed $1 trillion for the first time in history.

About Alex Bruno

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