Wealthy people like Elon Musk own immense wealth. But wealth and income are not one. And that is what sets him apart from you and me. Let’s open up
Neither Elon Musk nor many of the wealthy chief executives like him take a fixed salary-bonus to lead the organization. The amount of wealth that catches our eye is basically the current market value of his shares in companies like Tesla or SpaceX. And that’s why when Tesla’s share price went up, Elon Musk went from rich to super-rich, and when the share price went down, we say, he lost billions of dollars in one day.
Mask also tries to remind us of that whenever he gets a chance. A few days ago, he wrote on Twitter, “I only have stock, so the only way for me to pay my taxes is to sell the stock.”
Now the question is, at least at the beginning of the month, but the employees can go to the coffee shop on the strength of that salary. Don’t even wear a mask. How is he doing? How does he buy everything from rice and pulses to mobile phone data packs or stalks in bags? The straightforward answer is, he goes on loan.
According to a CNN Business report, the superpowers usually borrow from banks. That too all the time. Refers to the shares or other assets of the organization as collateral.
According to a Tesla document submitted to the Securities and Exchange Commission last August, Musk had taken a “personal loan” by pledging 68 million shares. At that time the market value of that amount of shares was 8 thousand 300 crore dollars.
The super-rich take advantage of that evasion
If you were Elon Musk, you could have gone to the bank and said without shaking hands, ‘Give me a million dollar loan. I don’t eat good or bad for many days, today I will dip my wrists with two chicks and eat them. ‘ However, it is important to note that this is not the case with bank loans.
Elon Musk has the ability to get a loan from a bank on demand. The bank will gladly lend to them. I guess he will charge 3 or 4 percent interest on the loan. Now, if Elon Musk had sold his shares for those one million dollars, it would have been a matter of taxing capital gains. I assume that the tax rate is around 20 percent.
Other than that, a CEO can’t sell shares whenever he wants. Because, when the CEO sells the shares, the investors get upset, they think, the organization must be facing some big problem. Tesla’s share price fell 5 percent earlier this month as it sold a small portion of the shares it received as chief executive.
One of the reasons why neither Elon Musk nor Jeff Bezos of Amazon has paid little or no income tax in recent years is the opportunity to get a low-interest loan from a bank.
In other words, Elon Musk doesn’t have to pay income tax because he doesn’t earn from Tesla. In return for the work he receives shares of the organization to meet the set goals, which is his asset. And as long as you are not selling assets, there is no question of taxation. And the super-rich take the opportunity of this tax evasion. But the employees of these super-rich organizations have to pay income tax.
matter is frustrating
When US President Joe Biden came to power, he undertook a number of projects that were beneficial to the people. Democrats plan to impose special taxes on the rich to cover their costs. Musk has publicly opposed the plan and so far he has succeeded. This is because there is no mention of ‘Wealth Tax’ in the bill which was finally approved by the Congress.
Elon Musk asked followers on Twitter to vote on whether he should sell 10 percent of his shares, even if it means paying taxes. The market value of his shares in Tesla was about 2 trillion dollars at that time.
https://twitter.com/elonmusk/status/1457064697782489088?r
Elon Musk said his followers would act accordingly, no matter what they said or did. Most of the followers voted in favor of selling the shares. Since then he has also sold several shares in a few steps. However, the main thing is that he had to sell some shares. Even if the followers are against the sale.
Elon Musk’s remuneration for working at Tesla is quite complex. However, to give an idea, it can be said that if the market value of Tesla exceeds so many trillions of dollars by June 2020, then Elon Musk will be given so many new shares. We’ve seen Tesla’s share price rise sharply over the years. Shares of the company have also been deposited in the possession of Elon Musk. He will have to sell the shares by August 2022 anyway. If not sold, Tesla will lose about 20 million shares.
Then why did you spread confusion by tweeting so many things unnecessarily? Who can understand his mood!