Saudi Press

Saudi Arabia and the world
Friday, Mar 29, 2024

US Lawmakers' Dig At Elon Musk For Bragging About Paying $11 Billion In Taxes

US Lawmakers' Dig At Elon Musk For Bragging About Paying $11 Billion In Taxes

The CEO of Tesla Motors and Space-X, Musk had on December 20 tweeted: "For those wondering, I will pay over $11 billion in taxes this year." The tax bill is considered as one of the highest in US history.

Top US lawmakers, including Indian-American Congresswoman Pramila Jayapal, have criticised Elon Musk, the world's wealthiest man and Tesla Motors CEO Elon Musk for bragging about paying USD 11 billion in taxes.

In a tweet on Wednesday, Texas Senator Ted Cruz said, "Got it. You don't like @elonmusk Who else do you want to loot?" The Republican Senator's tweet was in response to a post on Twitter by Jayapal, a Democrat, taking a dig at Musk for showing off his tax bill.


"Elon Musk made $36 BILLION in one day, but wants to brag about paying an $11 billion tax bill," she said in a tweet.

"Oh yeah, he also added more than $270 BILLION in wealth just since the pandemic started," she said, adding that it was time for the rich to pay their fair share.

The CEO of Tesla Motors and Space-X, Musk had on December 20 tweeted: "For those wondering, I will pay over $11 billion in taxes this year." The tax bill is considered as one of the highest in US history.

Earlier, Democratic Party Senator Elizabeth Warren, referring to Musk, had tweeted, "Let's change the rigged tax code so The Person of the Year will actually pay taxes and stop freeloading off everyone else." This led to an ugly spat between the two with Musk replying, "And if you opened your eyes for 2 seconds, you would realise I will pay more taxes than any American in history this year." Musk has sold off USD 14 billion worth of Tesla stock since early November, after asking his followers in a Twitter poll if he should sell 10% of his holdings. In the poll, his followers said he should pay.

But it's likely Musk would have begun selling anyway. That's because he faces a massive tax bill on Tesla stock options, according to an earlier CNBC report.

Musk's wealth comes from stock awards and gains in Tesla's share price.

Though Tesla shares have taken a tumble since Musk's Twitter poll, they remain incredibly valuable - the stock is up 28 per cent year-to-date, the report said.

He could have waited until next year to pay the tax bill, but that would have meant potentially getting hit by higher tax rates under the Democrats' Build Back Better bill, it said.

The report quoted a ProPublica investigation showing that Musk and several other billionaires paid no federal income taxes in 2018.

Between 2014 and 2018, Musk paid USD 455 million in taxes on USD 1.52 billion of income, despite his wealth growing by $13.9 billion over that period, it said.

Musk was granted the share options in 2012 as part of his pay package, and the options vested as Tesla hit various financial and operational targets in subsequent years. But he did not have to pay taxes on the options until he exercised them, which he started to do in November, a CNN report said on Wednesday.

With a top tax rate of 40.8 per cent, Musk, the richest person in the world with a net worth of USD 280 billion, faces a federal tax bill of about USD 10.7 billion from the exercise of these shares, the report said.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×