Elon Musk might currently be the richest man on Earth but that doesn’t mean we can’t sympathize over his steep tax bill. The Tesla CEO has taken to social media to confirm that he will be forking over R174 billion to the US Internal Revenue Service.
The payment is exclusively for the 2021 year with some reporting that this could possibly be one of the largest payments in United States history. Taking to his official social media account, Musk confirmed the hefty price tag.
“For those wondering, I will pay over $11 billion in taxes this year,”
Musk has sold off $14 billion worth of Tesla stock since the start of November 2021. Interestingly, Musk had mad the move after asking social media if he should sell 10% of his holdings.
Reports indicate that Musk is running out of time to sell Tesla stock. In fact, the deadline looms as close as August 2022. However, Musk would need to pay income tax on the gain.
Musk’s wealth is generated by stock awards and gains in Tesla’s share price. Furthermore, the SA-born billionaire opts to go this route rather than pulling a salary.
Although Musk’s decision to turn to social media for financial advice saw Tesla shares taking a knock, they remain valuable.
Musk slammed over tax avoidance claims
The Tesla CEO’s habit of borrowing money using stock as collateral has been met with criticism. Nevertheless, it appears to be a tax loophole for the extremely wealthy.
ProPublica recently went public with its investigation into this practice. Interestingly, it revealed that Musk and other billionaires had managed to avoid federal income taxes in 2018. Certainly, this is likely the reason for the snarky post.
Senator Elizabeth Warren recently questioned Musk being named Time Magazine’s Person of the Year. The US politician is one of the many sparring with Musk over what they view as tax avoidance.
In response to Warren, Musk boldly declared that he is set to break taxation records.
“I will pay more taxes than any American in history this year.”
In conclusion, if Musk truly is forking over billions of dollars his claim will soon become fact.