US Senator Elizabeth Warren calls for tax code changes to stop Elon Musk ‘freeing everyone’

Massachusetts Senator Elizabeth Warren has posted strong criticism of Tesla and SpaceX CEO Elon Musk and his recent 2021 Person of the Year award from TIME magazine. The longtime politician has called for a change to the country’s tax code so that Musk “stops making everybody pay”.

“Let’s change the rigged tax code so that the person of the year actually pays taxes and stops snacking on everyone”, Warren wrote. She later posted a follow-up tweet featuring an edited cover of TIME magazine featuring Elon Musk and the words “Tax Me.” The edited image also showed statements indicating that the CEO had become $240 billion richer during the pandemic and that Musk had paid $0 in federal income tax in 2018.

“When someone becomes big in America – big millionaire, big billionaire, big person of the year – part of that has to include paying it forward so the next child can have a chance too,” Warren Warren wrote.

Musk, who is set to pay $15 billion in taxes this year for selling 10% of his TSLA holdings, explained how he thinks billionaires should be taxed. During his appearance at The Wall Street Journal’s CEO Council Summit, Musk explained that his marginal tax rate is actually quite high — around 53%, in fact. And that, following Musk’s sale of some of his TSLA stock, would force the CEO to pay a record $15 billion in taxes this year. Musk also criticized the government’s capital allocation skills.

“First of all, I pay a lot of taxes. My marginal tax rate is about 53%. It’s not trivial. Of course, there are asset taxes, sales tax and everything else. There is also property tax. In general, I think inheritance tax is a good tax. If you’re thinking about assets beyond a certain level, which are way beyond, say, someone’s ability to consume, then at some point what you’re actually doing is a capital allowance.

“So it’s not money for personal expenses. It makes no sense to take the work of allocating capital away from people who demonstrate high skill in capital allocation and handing it over to an entity that has demonstrated very low skill. in the allocation of capital, that is, the government. I see government essentially as a society. It’s just the biggest company with a monopoly on violence, and where you don’t have any call backs,” Musk said.

Musk is currently the richest person in the world, with the CEO listed with a net worth of $254 billion, of which $97.6 billion has been added since the start of the year, according to data from the Bloomberg Billionaires Index. This increase is mainly due to the rise of Tesla, which has become a trillion-dollar company that has made electric vehicles mainstream. Musk, through his many companies, also employs around 100,000 workers around the world, allowing his companies to provide jobs for those who are qualified, whether they have a college (or even a high school) degree or not.

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US Senator Elizabeth Warren calls for tax code changes to stop Elon Musk ‘freeing everyone’

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