Elon Musk Explains Why He Pays So Little Income Tax on His $152 Billion Fortune

Tesla and SpaceX CEO Elon Musk lives very modestly by billionaire standards. Filip Singer-Pool/Getty Photos

A bombshell investigation of newly uncovered IRS recordsdata by ProPublica on Tuesday revealed that Elon Musk, alongside with more of The United States’s high billionaires, paid minute or no income tax as of late. The publication talked about the Musk responded to an initial press inquire with a lone ask imprint with none further elaboration. However the Tesla CEO broke silence on Wednesday when his high Twitter followers triggered him to debate his tax notify.

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The ProPublica file alleged that Musk, who’s price $152 billion, paid not up to $70,000 in federal income tax in 2015 and 2017, and nothing at all in 2018. He did seem to occupy paid his due in 2016 when he exercised more than $1 billion in stock alternatives. But his total “factual tax rate” for the five-year duration between 2014 and 2018, calculated as the amount of tax paid divided by develop bigger in collect price, is handiest 3.27 percent, principal lower than an average American household.

Musk’s defenders challenged ProPublica’s calculation. “If ‘tax the successfully off’ happens (which it gained’t), then Elon Musk would occupy to sell billion bucks price of Tesla shares,” tweeted Pranay Pathole, an Indian engineer whom Musk usually interacts with on Twitter. “This shall be terrible for the stock mark and can hassle rather lots of retail shareholders.”

“Precisely,” Musk responded. “[The] handiest time I sell Tesla stock is when my stock alternatives are expiring and I don’t occupy any substitute.”

He added, “Btw, I will continue to pay income taxes in California proportionate to my time in [the] teach, which is and shall be essential.”

The ProPublica investigation didn’t consist of recordsdata on teach income tax.

Precisely. Easiest time I sell Tesla stock is when my stock alternatives are expiring & I don’t occupy any substitute.

Btw, I will continue to pay income taxes in California proportionate to my time in teach, which is & will likely be essential.

— Elon Musk (@elonmusk) June 9, 2021

In Would per chance just 2020, Musk tweeted that he’s going to “sell almost all physical possessions,” alongside with his houses, so that he might perchance well well focus on managing Tesla, SpaceX and his other ventures.

He confirmed on Wednesday that he’d bought all nevertheless one home. “Yes, bought my houses other than one in Bay Location that’s rented out for events,” he tweeted. “Working on sustainable energy for Earth with Tesla and retaining future of consciousness by making lifestyles multi-planetary with SpaceX. Furthermore AI likelihood mitigation with Neuralink and fixing web page visitors with Tiring.”

Yeah, bought my houses, other than 1 in Bay Location that’s rented out for events.

Working on sustainable energy for Earth with Tesla & retaining future of consciousness by making lifestyles multiplanetary with SpaceX. Furthermore, AI likelihood mitigation with Neuralink & fixing web page visitors with Tiring.

— Elon Musk (@elonmusk) June 9, 2021

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