Elon Musk reportedly pays $ 4.6 billion in Warren’s wealth tax: report
- Musk is said to have paid $ 4.6 billion in 2020 as part of Warren’s “ultra-millionaire” plan, tax groups have said.
- The CEO of Tesla and SpaceX was worth at least $ 150 billion by the end of 2020.
- Musk plans to use his fortune to fund a future colony on Mars.
Elon Musk would have paid $ 4.6 billion in 2020 under “ultra-millionaire” tax proposals, according to data from tax groups.
Senator Elizabeth Warren of Massachusetts proposed the Ultra-Millionaire Tax Act on Monday. It would apply an annual tax of 2% on individuals’ net worth between $ 50 million and $ 1 billion, or 3% on net worth over $ 1 billion.
Had this tax been in place in 2020, Musk would have paid the second highest number of Americans, beaten only by Amazon CEO Jeff Bezos, Americans for Tax Fairness (ATF) and the Institute for Policy Studies (IPS ) Project on Inequality said, basing their calculations on Forbes data. Musk would be followed by Microsoft co-founder Bill Gates and Facebook CEO Mark Zuckerberg, the groups said.
The nation’s roughly 650 billionaires have a collective wealth of more than $ 4.2 trillion, the groups said. Their fortunes have grown by around 44% since March 2020, when pandemic lockdowns in the United States began, and over a decade, the wealth tax of these 650 billionaires alone would finance about three-quarters of the program. President Joe Biden’s $ 1.9 trillion coronavirus relief, the ATF and IPS said.
About a third of wealth tax would be paid by the 15 richest Americans alone, who together have a fortune of more than $ 2.1 trillion, they added.
Musk has gotten richer and richer over the past year
At the end of 2020, Musk’s real-time value was $ 153.5 billion according to Forbes and $ 170 billion according to Bloomberg. Both wealthy lists said his wealth had more than six-fold in a year.
Based on Forbes figures, Musk reportedly paid $ 4.6 billion last year according to Warren’s proposal. Using Bloomberg figures, that would have been $ 5.1 billion.
Musk and Bezos have become the richest person in the world since January. As of March 5, Bezos has been at the top of the Forbes and Bloomberg lists. Musk is worth $ 152.4 billion, according to Forbes and $ 162 billion, according to Bloomberg.
Musk made his fortune from his business empire. He is the CEO of Tesla and SpaceX, founder of Neuralink and co-founder of the Boring Company.
Despite receiving Tesla’s legally allowed minimum wage, Musk’s compensation package awards him shares when Tesla achieves certain goals, making him the highest-paid executive in the world last year. He owns a roughly 20% stake in Tesla, as well as 57 million Tesla stock options, according to Bloomberg.
He also owns a 48% stake in his aerospace company, SpaceX. A February 2021 roundtable valued SpaceX at $ 74 billion.
Musk has ambitious plans for his fortune. In December, he told Mathias Döpfner, CEO of Insider’s parent company Axel Springer, that he was selling all of his assets to fund a future colony on Mars.
“In fact, I will have virtually no property with monetary value other than corporate stocks,” Musk said. “If things are hectic at work, I just like to sleep at the factory or the office. And obviously I need a place if my kids are there. So, I’m just going to rent a place or something. “
Musk also recently sold several expensive real estate, including three neighboring homes in the Bel-Air neighborhood of Los Angeles.