Sen. Bernie Sanders has accused Elon Musk, the CEO of Tesla Inc. and SpaceX, of paying an extremely low effective tax rate of less than 3.3%. This claim was made amid Musk’s massive fortune, which currently stands at $637 billion, making him the richest person on the planet.
Sanders Alleges Unfair Tax Practices
According to Sanders, Musk’s tax rate is lower than that of the average truck driver, nurse, and teacher. Sanders stated, “Elon Musk, the wealthiest man alive, recently paid an effective tax rate of less than 3.3%. That is less than the average truck driver, nurse and teacher.” He emphasized the need for the wealthy and corporations to pay their fair share of taxes, saying “YES, we must demand the wealthy and corporations pay their fair share.”
Musk’s Record Wealth and Tax Claims
Musk’s net worth has increased by $17.3 billion so far this year, according to the Bloomberg Billionaire Index. He became the first individual to surpass $500 billion in net worth last year. Musk has made claims about his tax payments, including a statement that he expects to pay roughly the same amount in taxes over his lifetime. He also stated that he will probably end up paying over $500 billion in taxes, inclusive of death.
Musk’s Tax History
In 2021, Musk said he would pay over $11 billion in taxes that year. However, a ProPublica investigation suggested that he and several other billionaires paid no federal income tax in 2018. Musk’s tax payments have been a subject of debate, with some questioning the fairness of his tax rate.
Elon Musk’s $1 Trillion Tesla Pay Plan
Last year, the Delaware Supreme Court restored Musk’s 2018 compensation plan at Tesla, which is now worth $139 billion. The EV giant’s board has also approved a performance-based compensation plan that could be worth up to $1 trillion over the next decade, marking the largest CEO pay package in U.S. corporate history. This pay plan has sparked controversy, with some arguing that it is excessive and unfair.