New York: World’s richest person Elon Musk says he will pay more than $ 11 billion in taxes this year, an amount that could be a record payment to the US Internal Revenue Service . The billionaire could face a tax bill of more than $ 10 billion for 2021 if he exercises all of his options that expire next year, Bloomberg News calculations showed last week.
Sell ââTesla shares
The unusually high levy comes after Musk, CEO of Tesla and Space X, exercised nearly 15 million options and sold millions of shares to cover taxes related to those transactions. This followed a Twitter poll last month when it asked its followers whether it should sell 10% of its stake in the electric automaker, whose shares have soared more than 2,300% in the past five years.
A ProPublica report in June said Musk paid little income tax compared to his inordinate wealth. However, he objected to this characterization, saying he receives no salary from SpaceX or Tesla and pays an effective tax rate of 53% on stock options he exercises. He added that he expects the tax rate to increase next year.
Musk said earlier this month he would pay more taxes than any American in history this year. This was in response to another tweet from Massachusetts Senator Elizabeth Warren, who used Musk’s Time Magazine “Person of the Year” award to call him on his taxes.