Rajkot updates news Elon Musk pay 11 billion in taxes

www.rajkotupdates.news : Elon Musk pay 11 billion in taxes; The richest man in the world, Elon Musk, promised to pay taxes on 11 billion dollars. The founder of Tesla and SpaceX and the richest man in the world, Elon Musk, has named the amount that he will pay in taxes in 2021. He wrote about this on his Twitter.

“For those who are wondering, I will pay over $11 billion in taxes,” he said. At the time of writing, Forbes estimates Musk’s net worth at $244.2 billion. This statement was a kind of continuation of the skirmish on the Internet between Mr. Musk and Senator Elizabeth Warren. Last week, the senator urged the head of Tesla to pay more taxes. “Let’s change the wrong tax code so ‘Person of the Year’ actually pays taxes and stops being a freeloader,” she tweeted. To this, Mr. Musk replied that this year he would pay more taxes than any American in history.

Such a high amount of taxes is explained by the fact that since November of this year, Elon Musk began to exercise stock options that pay for his work at Tesla. The options give him the right to buy Tesla shares at market prices, which are usually much lower when the option is taken than when the shares are bought. Read full story at rajkotupdates.news.

June 2021 release by ProPublica

US Internal Revenue Service opened an inquiry after ProPublica published income tax data for US billionaires in June 2021, prompting demands for a wealth tax. It has been reported that the income tax paid by the wealthiest Americans between 2014 and 2018 represents just a small fraction of the rise in their wealth as a whole.

In a span of five years, Musk’s wealth climbed by $13.9 billion, revenues reached $1.52 billion, and income tax was $455 million.

Musk paid 3.27 percent of his earnings in taxes.

Publication of such information prompted a massive public outrage, despite the fact that the law provides no recourse against billionaires.

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In total, Mr. Musk received 25.5 million options back in 2012 with obligations to bring Tesla to certain indicators. Options are tax free. The share buyback period for them expires in August 2022, so last month Mr. Musk began buying back shares, and their value is taxed as income. And for Elon Musk, the tax rate is 40.8%. In addition, he may have to pay income tax in the state of California, which is the highest in the US – 12%. To cover the costs, Mr. Musk sold part of the purchased shares, bailing out $ 7.8 billion.

Who can pay such high taxes other than Elon Musk?

Musk is not the only American billionaire who could pay hefty taxes this year due to the sale of securities. The biggest US tycoons are actively dumping their stocks after a sharp increase in their value, and also in view of the potential increase in taxes in 2022. Amazon founder Jeff Bezos , the second-richest person in the world, sold $9 billion worth of Amazon shares , and Mark Zuckerberg liquidated $4.5 billion worth of Meta (formerly Facebook) shares.