One of the World’s extremely rich people, Elon Musk has recently revealed that, his wealth isn’t some profound secret and that his taxes are basic that, he could do them himself in a couple of hours. Musk’s remarks were made in a recent interview on a moderate parody site, after a congressperson tweeted about Musk’s wealth suggesting he wasn’t paying taxes.
Reacting to political attacks on his wealth and assessments, the world’s richest person said his riches of more than $245 billion is completely transparent and isn’t reserved in any seaward accounts or extraordinary tax vehicles to bring down his commitments.
Recently, Sen. Elizabeth Warren, D-Mass., tweeted that Musk was “freeloading off every other person,” since he didn’t pay federal income taxes in 2018.
“I don’t have any offshore accounts, no tax shelters,” Musk said in the interview. When asked if H&R Block could do his taxes, he said: “H&R Block could easily do my taxes. I don’t need H&R Block, I could do it. It would take a few hours. My taxes are very basic.”– Musk said.
Musk is expected to pay what is likely to be the largest single individual tax bill in U.S. history, with government and California annual expenses assessed to top $11 billion. He is expected to pay the assessment to get pay of more than $23 billion, paid as investment opportunities that would somehow or another lapse in August.
In November 2021, Musk polled his Twitter followers asking as to whether he should sell 10% of his stake in Tesla. Later, the followers voted for selling. According to Musk, he sold it.
“I sold enough stock to get to around 10%, plus the option exercise stuff,” he said in the interview.
The most recent filings with the Securities and Exchange Commission show Musk actually has not less than 3 million additional shares to sell to reach at his 10% goal of 17 million shares. He additionally still has almost 4 million more investment opportunities to practice by August, which suggests there are either more filings to come, or he will sell or exercise more stock before long.
Musk admitted that the requirement to pay his taxes on the compensation package was part of the reason for selling this quarter. He created a scheduled selling plan for the tax-related shares in September, well before the Twitter poll. He said that “over and above that” he sold shares to get to the 10% threshold.
Musk said that his enormous riches and low taxes are the two results of basic math: His wealth is gotten from his proprietorship stakes in Tesla and Space-X, which he said were “greatly agonizing and hard to build.”
He doesn’t take a compensation or money reward, and he hasn’t sold countless shares in Tesla until this year. Since taxpayers only pay taxes on income or stock once it’s sold, Musk said he didn’t pay a large amount in taxes every year.
“It’s important to understand, what is this wealth?” Musk said. “It’s not like I have some massive cash balances. My cash balances are very, very low, and at least until I sold stock. … Really the first time I sold stock in any meaningful way was this quarter.”
He said the one year he didn’t pay taxes — 2018 — was because he had “accidentally” overpaid in 2017 and had a credit for 2018. Yet the criticism of his tax payments, he said, led him to sell even more stock than required by his options exercise.
“I said ‘should I sell?’ What am I supposed to do? Do I send shares to the government? Unless I sell shares there is no actual mechanism to pay tax. So I said ‘should I sell 10% in order to pay tax?’ I asked Twitter and, on balance, they said yes.”
He said that even today, his fortunes are tied almost entirely to Tesla and Space-X. “If Tesla went bankrupt, I would go bankrupt too, immediately.”