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Elizabeth Warren Says Man That’s Paid Largest Tax Bill in U.S. History Doesn’t Pay Taxes

  • by:
  • Source: Dan Bongino
  • 06/11/2022
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Once again economically illiterate Senator Elizabeth Warren is coming out swinging at Tesla/SpaceX/Boring Company/Neuralink CEO Elon Musk with no facts in hand.

“Elon Musk in 2018, we’ve actually seen his tax returns,” Warren said Sunday on CNN’s New Day. “You know how much he paid in taxes, one of the richest people in the world? Zero.”

Warren attempted to explain all the “creative” ways the wealthy are able to maneuver the tax code, but there’s nothing exactly sinister afoot here like she implies. All Warren’s criticism really just boils down to her not thinking it’s fair that the government doesn’t tax gains on stock holdings until they’re sold – yet she’s is trying to make this sound like some niche phenomenon only the rich with special accountants can take advantage of. Unless we’re to assume a holding period of “forever,” every rich person she’s accused of dodging taxes will eventually pony up 20% of their capital gains to Uncle Sam – or 40% through the death tax if they choose the “forever” option.

Warren is free to argue the percentage should be higher, but she’s lying in putting Musk’s tax rate at “zero.” Liberals like Warren are happy to remind us that illegal immigrants do (barely) pay taxes because they pay dozens-to-hundreds of dollars a year in sales tax, yet when Musk pays millions in non-income taxes, such as property taxes every year, she’s happy to round that down to zero.

But to the main point: Musk has paid taxes on Tesla stock he’s accumulated through converting stock options, which has lead to him paying the largest tax bill in U.S. history. Musk recently faced a record $15 billion tax bill due to stock options in Tesla, then he had to sell shares to pay those taxes. However, the capital gains on the shares Musk sold to cover the $15 billion tax bill were themselves subject to the aforementioned 20% capital gains tax, meaning his true tax bill last year is a couple billion higher than the $15 billion he had to cover.

This was already pointed out to Sen. Warren last year by Musk himself, and she’s opted to just ignore this.

For reference, $15 billion is enough money to cover the Cherokee Nation’s budget for more than five years.

Matt Palumbo is the author of The Man Behind the Curtain: Inside the Secret Network of George Soros


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