Elon Musk is facing a heavy tax bill this year, possibly the largest in US history, according to CNBC.
“For those who are wondering, I will pay over $ 11 billion in taxes this year,” Tesla’s CEO wrote on Twitter on Monday.
For those wondering, I will pay over $11 billion in taxes this year
— Elon Musk (@elonmusk) December 20, 2021
Musk has been selling $ 14 billion worth of Tesla stock since early November, following a Twitter poll asking his followers if he should sell 10% of his stock. The answer to this poll was a resounding “yes.”
The stock options that Musk received in 2012 expire in August of the following year. In order to exercise them, he must pay income tax on profits.
Instead of receiving a salary or a cash bonus, Musk’s fortune comes from winning Tesla shares.
Although Tesla shares have fallen since Musk took to Twitter, they are still up 28% year-on-year.
When Musk wants cash, he can simply borrow money using his company shares as collateral. However, this practice has been criticized by some politicians as a tax loophole for the very rich.
Earlier this year, ProPublica published a survey showing that Musk and several other billionaires had not paid any income taxes in 2018.
Between 2014 and 2018, Musk paid $ 455 million in $ 1.52 billion in income taxes, according to ProPublica, despite his fortune growing by $ 13.9 billion during that time. period.
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Source From: Capital
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