Elon Musk says that this year he will pay more than 11,000 million in taxes | DW | 12/20/2021

“For those who are wondering, this year I will pay more than 11,000 million dollars in taxes,” wrote this Monday (12/20/2021) businessman Elon Musk, the richest man in the world, on Twitter. His fortune, estimated at $ 244 billion, comes mainly from his stakes in electric car maker Tesla, of which he sold about $ 14 billion in shares this year.

When Senator Elizabeth Warren criticized the “Times” magazine last week for choosing Musk as “man of the year”, the businessman responded to the Democratic policy also through the social network, where he has more than sixty million followers: “This year I will pay more taxes than any American in history.”

In early November, Musk asked his then 62.5 million Twitter followers whether he should sell 10% of his shares. “There’s been a lot of talk of unrealized profits as a way to avoid paying taxes so I’m proposing to sell 10% of my shares in Tesla. Do you support it?” Musk asked.

Cover of Time magazine in which Elon Musk is chosen as “person of the year” 2021.

The result of the survey conducted by Musk was a majority of “Yes” so the businessman proceeded to sell 14,000 million dollars in shares of the company. However, the decision seemed to have been made previously. Musk conducted the survey before a series of company stock options that he received in 2012 as payment for his position as CEO at Tesla expired in August 2022. Had he waited for 2022, Musk would have had to pay a higher amount in taxes.

According to specialized media, Musk finances his lifestyle with loans he obtains using his shares in Tesla as collateral, which allows him to reduce what he pays in taxes. This year, the journalistic organization ProPublica published a report in which it said that Musk paid 455 million dollars in taxes between 2014 and 2018 even though his assets increased in that period to 13.900 million dollars. And in 2018, the businessman did not pay federal taxes.

In 2020, Musk already changed his official residence from Los Angeles, where he had lived for the past 20 years, to Austin, Texas. The change of residence allowed Musk to significantly reduce the taxes he pays. And in October, Musk said he would move Tesla’s headquarters from Palo Alto, California, to Austin, Texas, justifying the decision because of the high cost of living in the Californian town.

lgc (efe/twitter)

We want to give thanks to the writer of this write-up for this awesome web content

Elon Musk says that this year he will pay more than 11,000 million in taxes | DW | 12/20/2021