3 ms·
> Name: Elon Musk, Net Worth: $19.9 billion, Federal Income Tax Paid: $8,410 How is this possible? Why does Elon Musk pay less taxes than an average person who
by Bhilai 5y ago
> Name: Elon Musk, Net Worth: $19.9 billion, Federal Income Tax Paid: $8,410
How is this possible? Why does Elon Musk pay less taxes than an average person who works in Tech?
- lvl100 5y agoBecause our society and govt think the only way to get innovation is to incentivize the rich. That and war.
- deleted 5y ago[deleted]
- monocasa 5y agoA tiny salary, and not realizing capital gains on the stock but instead taking out margin loans using his stock as collateral.
- fairity 5y agoHis net worth is stored in company shares, which doesn't get taxed until it's sold.
- bmitc 5y agoMy understanding is that these ultra rich people have their wealth tied up in investments, so they never "see" any income despite their investments' massive growth. To get cash and buy things, they simply take out loans at super low interest rates using their investments as collateral. Basically, it's cheat codes. It's probably why CEOs also like to take super low salaries. What I don't understand is how their stock gifts or dividends don't trigger more taxes or why their taxes are indeed so damn low.