Technology

Elon Musk announced that he will pay more than $ 11 billion in taxes this year


Billionaire Elon Musk, said he will pay more than $ 11 billion in taxes in 2021, an amount that could form a record payment to the US Taxation Department.

Billionaire Elon Musk (Image: Bloomberg)

Billionaire Elon Musk said he will pay more than $ 11 billion in taxes in 2021, an amount that could form a record payment to the US Taxation Department.

The information comes amid much speculation about how much tax the billionaire will have to pay after a “squash” with Elizabeth Warren – who used the title of “Person of the Year” in Musk’s Time Magazine. to urge him to pay taxes. Elon Musk has responded with the claim that he is more taxpayers than any other American. If Musk ends up paying a whopping $11 billion in taxes, this statement is true.

Musk has sold $14 billion of Tesla stock since early November, after asking his followers in a Twitter poll whether he should sell 10% of his shares to pay taxes. While Tesla shares have fallen since this poll, they’re still incredibly valuable – the stock is up 28% so far

According to Bloomberg, the billionaire could face a tax bill of more than $10 billion for 2021 if he exercises all the options that expire in August next year.

The unusually high tax rates come after Musk exercised nearly 15 million options and sold millions of shares to raise money to “cover” the taxes associated with these transactions.

Instead of receiving a salary or cash bonus, Musk’s wealth comes from stock awards and Tesla’s share price. When he wanted cash, Musk simply borrowed money using his company’s stock as collateral. However, this approach has been criticized by some politicians as a tax loophole for the super-rich.

A ProPublica report in June said Musk paid less taxes than his huge fortune, specifically from 2014 to 2018, Musk paid $455 million in taxes on $1.52 billion in income, But his fortune increased by $13.9 billion in that time period.

However, the billionaire opposes this, saying he does not receive salary from SpaceX or Tesla and pays the actual tax rate of 53% on exercised stock options. Musk hopes that number will increase next year.

Elon Musk is currently the richest man in the world with his electric car company Tesla worth about $1 trillion. Over the past few weeks, Musk has sold nearly $14 billion worth of Tesla stock.

Huong Dung (According to Bloomberg, CNBC)

Elon Musk continues to be named Person of the Year by Financial Times

Elon Musk continues to be named Person of the Year by Financial Times

Just a few days after being named “Person of the Year” by Time magazine, billionaire Elon Musk continues to be awarded this title from the Financial Times.

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