Elon Musk Claims He'll Pay , $11 Billion in Taxes For 2021.
The billionaire entrepreneur made the announcement via Twitter on Dec. 19.
For those wondering, I will pay over $11 billion in taxes this year, Elon Musk, via Twitter.
If confirmed, CNBC reports that the sum amounts to "the single largest tax bill ever.”.
Musk and other billionaire business owners have faced increased scrutiny in recent years ...
... over the ways in which they
are able to avoid large tax bills.
One way that Musk has been able to avoid paying similar tax amounts in the past ...
... is due to the ways in which he receives income through his role as Tesla CEO.
Musk receives no
salary or bonuses
as the head of
the company.
Instead, he is awarded company stocks which he can also leverage to borrow money.
This system of payment means Musk is not taxed in the same ways he would be if he received a standard salary and cash bonuses.
Under the Biden administration's
Build Back Better bill, Musk
would be obligated to
pay even more in taxes.
By selling off his a certain percentage of his stocks before the potential passage of the bill, Musk is avoiding a higher tax bill.
Musk made the decision to sell off billions of dollars of Tesla stock after conducting a Twitter poll in November.
According to Pro Publica, Musk paid no taxes in 2018 and $455 million in taxes over the course of the prior four years