- Billionaire Elon Musk is not a fan of Democratic lawmakers’ billionaire tax proposal.
- In his most recent review, Musk said he would use the billions of tax dollars to reach Mars.
- “My plan is to use the money to bring humanity to Mars and preserve the light of consciousness,” he said.
Billionaire Elon Musk once again criticizes the billionaire tax proposal, which could cost him up to $ 50 billion if passed.
That $ 50 billion, he claims, could be used to reach Mars with rockets produced by his company, SpaceX.
“My plan is to use the money to bring humanity to Mars and preserve the light of consciousness”, Musk said Thursday.
The new tax proposal, unveiled this week by Senator Ron Wyden of Oregon, directly targets the wealthiest 700 or so Americans. This of course has an impact on people at the top of this list, including Amazon co-founder Jeff Bezos, Microsoft co-founder Bill Gates, and Tesla and SpaceX CEO Elon Musk.
Of that group, Musk currently ranks number one with a net worth of nearly $ 300 billion, according to the Bloomberg Billionaires Index. His net worth, however, is primarily tied to his holdings of stocks rather than his annual income.
Under the bill proposed by the Senate Democrats, taxpayers earning more than $ 100 million in annual income or having at least $ 1 billion in assets held for three or more years are expected to tax billions. Musk in particular could owe up to $ 50 billion in taxes over the next five years, and Bezos would face an equally high tax bill of $ 44 billion, according to one projection.
Even after paying those tax bills, Musk and Bezos would still be the richest people on the planet.
Musk also slammed the proposal on Wednesday, with a Twitter post that read, “Eventually they run out of money for other people, then they come and get you.”
Unlike most Americans, who make money from paychecks that contribute to annualized income, billionaires like Bezos and Musk derive little wealth from their paychecks, allowing them to stay unpaid. income tax.
The majority of Bezos’ net worth – $ 196 billion – is tied to a 10.3% stake in Amazon which is currently worth around $ 175 billion. Because stock prices fluctuate regularly, the billionaire has sometimes fought for the richest title in the world with Elon Musk.
Bezos can avoid paying taxes on his wealth accumulated from Amazon stocks because, under current law, stock gains are not taxed until they are realized by selling the stock: being Since these stocks represent value, but cannot be used as an offer, they are not counted as “income” – even if they appreciate hugely, like those of Amazon and Tesla.
Additionally, Bezos and other billionaire shareholders are able to turn those shares into usable cash without having to sell: by borrowing money from their equity holdings, they are able to lock in a lending interest rate. lower than what they would pay in capital. gains taxes that are applied after the sale of a share.
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