economy /

Elon Musk Poised To Make The Single Largest Tax Payment in History

The revelation comes amid an ongoing feud between Musk and Senator Elizabeth Warren

Elon Musk, the CEO of Tesla and the world’s richest man, Tweeted late Sunday informing the world that he will be spending more in taxes this year than some countries make annually.

Musk was recently named Time Magazine’s “Person of the Year” and has been a highlight of media focus for quite some time. 

His company Tesla currently has a value of about $1 trillion. Over the last few weeks, Musk sold nearly $14 billion worth of his personal Tesla shares. He currently has a net worth of $292 billion, as of Monday.

Bloomberg News recently reported that Musk will likely face a tax bill of more than $10 billion if he exercises his stock options set to expire in August of 2022. According to the report, this would be the most significant individual payment to the Internal Revenue Service in history. 

Musk, however, says that the payment will be even higher than their estimate.

“For those wondering, I will pay over $11 billion in taxes this year,” Musk tweeted on Sunday.

This entire public dialog comes amid allegations that Musk “paid nothing” in federal income taxes in 2018 and less than $70,000 in 2015 and 2017. There has been an ongoing feud between Musk and Senator Elizabeth Warren over this issue.

Warren recently dubbed Musk “the world’s richest freeloader” in her rant over billionaire tax liabilities.

Musk’s tweet on Sunday directly responded to Warren’s criticism of his wealth and purported tax avoidance.

Warren tweeted last Monday: “Let’s change the rigged tax code so The Person of the Year will actually pay taxes and stop freeloading off everyone else.”

But Musk hit back, tweeting, “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.” tweeted Musk

He also linked a Fox News opinion article claiming Warren lied about having Native American heritage to benefit from affirmative action.  

Over the last few months, Musk has become more vocal about his wealth, the government control of wealth, and specifically the leadership in Washington. 

“A lot of the push for higher government involvement and expropriation of assets by the government is pushed by a bunch of politicians who are actually saying that resources shouldn’t be in control of private individuals. They should be in control of the government,” Musk said in his Time Magazine interview. 

He has also publicly criticized President Joe Biden’s Build Back Better Plan, which he said is fully funded by “the very largest corporations and the wealthiest Americans.”

Musk’s stock options come due in August 2022, a linchpin in this debate over his current wealth. To exercise them, Musk must pay the income taxes on the gains, and since they are taxed as an employee benefit or compensation, they will be taxed at 37 percent, plus the 3.8 percent net investment tax, according to reports by CNBC.

Musk will be subject to the top tax rate in California since the options were granted and earned when he was a California resident.

Combined, CNBC reports, the state and federal tax rate on his gains will be 54.1 percent. If true, this would render a tax bill for Musk at just over $15 billion in 2022.

Per Musk’s claims that he would pay more in taxes than some country’s GDP, Nasdaq recently published a report that listed countries with the projected lowest gross domestic product in 2021. If Musk’s tax bill reaches its maximum, his check will be larger than the GDPs in Burundi, South Sudan, Somalia, and just shy of Mozambique’s projected $13.96 billion in 2021.

On Wednesday, Tesla closed at $975.99, up more than 1 percent from the day before, sustaining Musk’s enormous wealth and position as the World’s Richest Man. 

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9 responses to “Elon Musk Poised To Make The Single Largest Tax Payment in History”

  1. pandusa says:

    I have to admit math is not my strong point. And when you get into billions…all those zeros give me a headache (not to mention jack my already labile blood pressure). Besides,I never have occasion to count that high. I don’t know if it is fair…or not. Guess I will have to sit this one out. But being California is involved and CNBC is reporting-it is not worth my time.

  2. Patrick1984 says:

    That Warren or any of these phony grifter politicians would call Musk a freeloader is not a surprise. What gets me is this army of these cult members and automatons who just regurgitate whatever the Corporate Media tells them. They truly love their conformity and servile worship of power.

  3. KruelWolf says:

    And the largest tax payment will be spent by the feds in less than an hour on stupid shit…

    Pretty sure he could allocate that money better, and make it last longer than Biden and his friends.

  4. Sdonna63 says:

    So because he Has worked hard to get where he is now. he has to pay 54.1% this is wrong. isn’t this what America is about. So you fill your dream and get slammed with over half of your income in taxes. Anyone that agrees with this is wrong as well.
    Let me tell you. I live in California and I’m living under poverty. I can’t work. My disability prevents me. Taxes kill me. Now we got inflation. This man works for his money.
    Seems to me poverty and rich stands side by side when it comes to taxing. It’s wrong

  5. KermodeBear says:

    He’s “the richest man in the world” but but all that networth is theoretical. There’s no way he could cash out all his shares at that price. If he tried the share price would drop like a rock. And who knows? Tesla could face a massive scandal and the stock price could drop 90% overnight.

  6. PseudoSwede says:

    That’s so patriotic of him to pay taxes “for the ‘greater good.’”

  7. Wolv256 says:

    Pay in pennies

  8. Invisible_Stalker says:

    There is no limit to the envy of your average American.

  9. Jamis2590 says:

    Thank you guys. These are some FUCKED up times!!! The amount of floating anxiety is unnerving.