Tesla founder Elon Musk stated Tuesday that the electric car maker would contribute a massive sum of federal tax revenues in the coming years amid an ongoing dispute over a Democrat-led push to increase taxes for the richest Americans.
Musk commented on the company’s federal tax contributions in response to a Twitter thread Breakdown of the tax payments the billionaire owes due to his stock-based compensation plan. Dogecoin inventor Billy Markus, who tweeted under the pen name Shibetoshi Nakamoto, noted that Musk’s personal contributions would be in addition to Tesla’s federal tax bill.
“Over time, Tesla will raise hundreds of billions in employee income tax, product sales tax, and property tax in addition to profit taxation,” Musk tweeted in response.
ELON MUSK announces that Tesla is headquartered in Austin. relocated
Federal tax policy has been the subject of constant debate in recent months, with left-wing lawmakers from President Biden to Senator Bernie Sanders, I-Vt., Advocating higher taxes on corporations and the richest Americans. Several Democrats have called for a “billionaire tax” on unrealized investment gains, although this provision is unlikely to be included in Biden’s comprehensive social spending bill.
Musk saved up with Sanders last weekend. The Vermont Senator tweeted that lawmakers must “require the extremely rich to pay their fair share”. In response, Musk said, “I keep forgetting that you’re still alive.”
On November 6, Musk asked his Twitter followers whether to sell 10% of his Tesla stock amid the ongoing debate over “unrealized gains as a means of tax avoidance.”
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Musk sold nearly $ 8 billion worth of Tesla shares this month. He has announced that he will use a portion of his proceeds to cover his tax liability from exercised stock options that would otherwise lapse.
