Elon Musk has claimed that he paid over $10 billion in taxes in a single year, stating it was more than anyone in history has ever paid. The tech billionaire responded to a post on X that highlighted how the top 1% of earners paid 40% of federal income taxes in 2022 while holding only 22% of adjusted gross income. The post read, "Do rich people pay taxes? Yes. Do they pay their fair share? More actually." Musk replied, "I have paid over $10B in taxes in a single year, more than anyone in history."
Musk Details His Tax Rate
In the post, Musk explained that if he exercises and sells stock options, his combined federal and state income tax rate would be nearly 45%. He wrote, "If I exercise and sell stock options, the combined federal and state income tax is ~45% (I still pay California taxes for every day I spend there)." He added, "Then there is another 40% tax paid on my estate when I die. Overall, I will probably end up paying trillions in taxes."
California Wealth Tax Proposal
Musk's comments come as California votes on a proposed wealth tax that would impose a one-time 5% tax on individuals with a net worth above $1 billion. The Tesla CEO has criticized the tax, joking that it may be better to leave the planet if taxes keep rising.
Tech Leaders Leaving California
The proposed billionaire tax has been linked to the departure of several high-profile tech leaders from California. Over the past few years, many Silicon Valley founders and executives have moved their primary residences out of the state, citing rising taxes and regulatory uncertainty. Google co-founder Larry Page moved to Florida, while Sergey Brin also left California. Oracle founder Larry Ellison and PayPal co-founder Peter Thiel have relocated as well. Recent reports indicate that Meta CEO Mark Zuckerberg and his wife Priscilla Chan have purchased a home in South Florida, joining the exodus of California billionaires.
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