Featured Image Credit: BRENDAN SMIALOWSKI / Contributor / Getty
Elon Musk has revealed how much he pays in tax every year, pushing back against claims from lawmakers that billionaires like him aren't offering up their fair share to the government.
It's no secret that Elon Musk earns a lot of money, as his record-breaking net worth is currently more than the next richest individuals combined with a few hundred billion dollars left over to spare.
The reality of this wealth is a little different than it might initially seem, however, as Musk has previously indicated that the vast majority is tied up in stocks for his several companies — although he's still left with more cash than most people on Earth will earn in a lifetime.
One of the biggest points of political conversation in the United States right now though is taxation for the nation's richest individuals, and Musk has offered his own perspective on the matter.
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Taking to X – as he usually does – Musk responded to a post claiming that rich people pay 'more than their fair share' of taxes proportionate to their wealth, referencing statistics that state that the top 1% hold 22% of the total adjusted gross income but pay 40% of total income taxes paid.
Responding to this, Musk declared: "I have paid over $10B in taxes in a single year, more than anyone in history. If I exercise and sell stock options, the combined federal and state income tax is ~45% (I still pay California taxes for every day I spend there).
"Then there is another 40% tax paid on my estate when I die. Overall, I will probably end up paying trillions in taxes."
Whether this figure includes taxes paid by his companies like Tesla, SpaceX, or the aforementioned X is unclear – especially as he previously claimed that he only has 0.1% of his net worth in cash – but for a man who earns as much as Musk, $10 billion is actually a relatively small figure.
His net worth is so large that the daily fluctuations often sit around this amount, and many would argue that a fair taxation system would result in him paying far more, despite $10 billion already being a hefty figure.
For example, Musk notably takes little to no actual salary from his position at Tesla, and refused income from his government role at the Department of Government Efficiency.
Many in the richest man in the world's replies have praised him for this admission, however, with one arguing that "as an American I respect you for it, due to the pursuit of bettering humanity."
Another added that they would "much prefer you retain more of your earnings to drive progress for humanity rather than handing it over to self-serving crooked politicians," yet Musk himself has advocated for 'universal high-income' schemes powered by profits generated by AI and automation.
