If you’ve been keeping up, Elon Musk has been warring with Sen. Elizabeth Warren over his taxes and now claims he will pay $11 billion in taxes this year, but multiyear records show he’s only paid a past rate of 3.27%.
Democrats maneuvering to tax the ultra-wealthy
Elon Musk currently holds the title of the wealthiest person in the world and the first person to achieve a net worth of over $300 billion.
Senator Elizabeth Warren (D-MA) and other Democrats had sought to include a tax proposal in the Build Back Better plan, which would have affected those who have more than $1 billion in assets or those with incomes of more than $100 million for three consecutive years, CBS reported.
Musk’s war of words with “tax the rich” politicians
A war of words has been going back and forth between Elon Musk and Warren, who has long championed making the ultra-wealthy pay a higher tax rate. The sniping is pretty comical. Here is some of their snappy dialogue.
Warren made the first shot across the bow when she tweeted,
“Let’s change the rigged tax code so The Person of the Year will actually pay taxes and stop freeloading off everyone else.”
Musk had just been named Person of the Year by Time magazine, and he responded with a volley of tweets.
Musk went for the jugular right off the bat.
“Elizabeth Warren is a fraud — Her lies about being Native American disqualify her from presidency, Senate,” the Daily Wire reported. “Stop projecting!”
Musk followed up with,
“You remind me of when I was a kid and my friend’s angry Mom would just randomly yell at everyone for no reason.”
“Please don’t call the manager on me, Senator Karen.”
A few hours later, Musk made the following statement.
“And if you opened your eyes for 2 seconds, you would realize I will pay more taxes than any American in history this year.”
He followed with another barb: “Don’t spend it all at once … oh wait, you did already.”
Will Elon Musk really pay $11B in taxes this year?
The question is: Will Musk pay more taxes than any American in history?
He believes so, tweeting on Sunday night: “For those wondering, I will pay over $11 billion in taxes this year.”
In November, after Tesla stock soared to a value of $1 trillion, NPR reported, it boosted Musk’s wealth by another $36 billion, bringing Musk’s net worth to $287 billion at the time, according to the Bloomberg Billionaires Index, making him the richest individual in the world.
Musk has been selling off roughly 4.5 million shares of his Tesla stock over the past several weeks, reportedly earning more than $5 billion, CBS reported. The selloff only amounts to roughly 3% of Musk’s stake in the company, and he retains around 167 million shares.
Despite billion-dollar earnings, Elon Musk only paid 3.27% in the past
There’s a reason people are paying attention to Elon Musk’s recent massive earnings and how much he actually pays in taxes.
This past June, an investigation by ProPublica investigation of wealthy individuals around the world found that between the years 2014 and 2018, the true tax rate that Musk paid only came out to 3.27%. The probe found that during the years 2014-2018, Musk’s wealth had increased by nearly $14 billion. Despite those huge earnings, in 2014, Musk paid no federal income tax, only $68,000 in 2015, $65,000 in 2017, and none in 2018.