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Why Elon Musk asks his fans if he should sell 10% of his shares in Tesla?

2021-11-06T23:19:17.681Z


Behind this umpteenth provocation hides a great substantive debate in the United States, on the sidelines of Joe Biden's investment plans.


A very political poll.

Elon Musk asked his 62 million Twitter followers on Saturday whether he should sell 10% of his shares in Tesla and assured him that he would stick to their decision.

“There has been a lot of talk lately about unrealized gains as a tool for tax evasion, so I propose to sell 10% of my Tesla shares,” writes the American billionaire, general manager of the electric vehicle company.

The American billionaire takes a stand in his own way in the public debate around Joe Biden's reforms and the Democrats' proposals, some of whom want to tax the super-rich - Elon Musk being considered the wealthiest on the planet.

At the time of this publication, the 1.1 million voters in the poll voted in favor of this sale, which would constitute for the man whose fortune is estimated at 338 billion dollars, "the only way to pay taxes ”.

Elon Musk pays almost no income tax

Indeed, rich as he is, Elon Musk pays almost no income tax.

And for good reason: "Note that I do not take salary in cash or bonus anywhere," said Elon Musk, still on Twitter.

No salary, no income tax.

The man who owned about 17% of Tesla's outstanding shares as of June 30, which is currently worth $ 208.37 billion, essentially derives his fortune from stock market fluctuations in the companies he owns shares in, Tesla, but also Space X or still Neuralink.

And this is the problem, for Democrats.

The left wing of the American parliament has proposed to tax "the unrealized capital gains of billionaires", to finance the huge investments of Joe Biden, investments of several billion euros to revive the United States after the Covid-19 , and with a view to managing the ecological and social transition.

An injustice according to the Democrats

The Democrats believe that billionaires' stock portfolios should not escape taxation, as it is their main source of wealth, and even enrichment, when it is better listed on the stock market.

They therefore want to tax these assets, even before they are transformed into liquidity, that is to say into current currency.

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The proposal was ultimately withdrawn from the Biden plan.

In particular, it has been criticized because in principle it is not possible to pay for something in shares.

It is only at the time of the sale that they turn into money.

However, these earnings are taxable, hence Elon Musk's survey.

If he sells, he will be taxed.

If part of the Democrats are keen on a potential tax, it is because this system benefits the richest, who unlike the poor can choose between income and shares.

"I will respect the results of this poll, whatever the conclusion," added the multi-billionaire.

A rather cash way, to play politics, under the guise of entertaining the gallery.

Source: leparis

All business articles on 2021-11-06

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