Elon Musk Criticizes Dems’ Wealth Tax Plan

Tax on Ghost Money?

Elon Musk, known for the innovation in his companies, is going to get taxed for money he has not yet earned. That’s if the tax plan of the Democrats gets signed into law.

At the moment, the bill is being reviewed by the Senate Finance Committee Chairman Ron Wyden (D-Ore.), which will impose a tax on the wealthiest people in the country, according to Treasury Secretary Janet Yellen. It will be an annual tax on ‘unrealized capital gains’ on liquid assets, which includes stocks owned.

Musk, the richest man in the world, reacted to a Twitter user’s letter to representatives in protest of the bill, saying, “Exactly. Eventually, they run out of other people’s money and then they come for you.”. Most of his wealth is tied up to Tesla stock, which just received a valuation of USD 1 Trillion dollars on Monday. He owns 20.7% of total shares outstanding in Tesla.

According to Musk, he also does not draw any salary from the company, and he only gets stock compensation. Basically, he is cash negative but has money from investors through his company to keep Tesla running.

Tesla stock, in turn, increases his wealth portfolio as it continues to innovate and grow. This is the kind of capitalism which allowed the country to become the biggest economy, because innovators can keep their vision alive and take risks.

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Dems’ Infrastructure Bill

However, Democrats have another idea for distributing wealth. For Democrats, building social safety nets is a priority. The proposed tax is one of the ways left to pass the infrastructure bill, which was pared down due to infighting amongst Democrat Senators.

The mammoth bill has been at the center of the promise of Joe Biden to ‘Build Back Better’, who then promised to ‘shut down the virus’, but not the economy. The bill will be spent over the course of 10 years for many programs of Democrats such as healthcare, free kindergarten, and childcare for low and middle income families—all for free.

This is one of the remaining solutions for the Democrats in order to fund the highly touted infrastructure bill. According to the CNN interview with Janet Yellen, the corporate income tax is off the discussion, as well as taxes on high-income individuals. This was after opposition from Sen. Sinema (D-Ariz.).

Disincentive to Investment

Elon Musk has proven his company’s ability to innovate and has drawn the confidence of retail and institutional investors alike. This has led to many technology breakthroughs in batteries, manufacturing, robotics, and electric cars.

However, it required him to be able to maintain a stock position that allowed him to keep the vision of his company alive. If there’s a billionaire who has the most say in this wealth tax, it’s probably Elon.

How this can help innovation and stop poverty is not clear, though. Jobs are generated through innovation, and too much free credits is a disincentive to the creation of jobs, businesses, and investments.

Reactions to Wealth Tax

The greatest secretive scam is the illusion of the stick market. Making an enemy of Elon Musk is so disengenuous. Rep Jayapal does such a disservice by doing this. The real enemy issue source of this fake wealth: Federal Reserve who provides investment banks with the liquidity.

Dear MAGA

The greatest secretive scam is the illusion of the stick market. Making an enemy of Elon Musk is so disengenuous. Rep Jayapal does such a disservice by doing this. The real enemy issue source of this fake wealth: Federal Reserve who provides investment banks with the liquidity. https://t.co/NreNOkC0um
— Dear MAGA (@dear_maga) October 27, 2021

People take 20x bets on #crypto with majority of life's savings, quoting @elonmusk and other gurus. Elon built wealth by creating products and technologies that shape our future. He invests in #Cryptos out of CURIOSITY with <1% of his wealth. Create INNOVATORS! NOT GAMBLERS!

Baqar Jafri

People take 20x bets on #crypto with majority of life's savings, quoting @elonmusk and other gurus. Elon built wealth by creating products and technologies that shape our future. He invests in #Cryptos out of CURIOSITY with <1% of his wealth. Create INNOVATORS! NOT GAMBLERS! pic.twitter.com/Zzn0XZ8ECZ
— Baqar Jafri (@TheBaqarJafri) October 25, 2021

Elon Musk's Wealth Doesn't Matter. The Federal Government would spend all that money in 2 weeks.

Good Morning Liberty!

Elon Musk's Wealth Doesn't Matter. The Federal Government would spend all that money in 2 weeks. pic.twitter.com/DRevVDaW3V
— Good Morning Liberty! 🎙 (@GoodAMLiberty) October 19, 2021

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