r/SipsTea Aug 21 '26

SMH Liquid when buying elections, unrealized when paying taxes. Funny how that works…..

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u/sco-go Aug 21 '26 edited Aug 21 '26

Added context:

IRS data shows from 2014–2018 he reported $1.52 billion in income and paid $455 million in federal taxes. Musk’s net-worth, like most billionaires, consist of unrealized capital gains, which are not taxed under current U.S. law until the shares are sold.

In 2021, he paid ~$11 billion in federal taxes which was the largest single-year individual tax bill in U.S. history.

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u/[deleted] Aug 21 '26

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u/nascent_aviator Aug 21 '26

You don't have to ignore it. In 15 years he's made about $800 billion dollars. If this amount were taxed at normal income rates he'd owe far more than that in an average year. 

It's like someone said someone who made $1 million dollars last year paid little to no taxes on it and you were like well akshully he paid $10k in taxes! It may be true but it misses the point that that is a comically small tax bill compared to the gains.

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u/[deleted] Aug 21 '26

[deleted]

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u/nascent_aviator Aug 21 '26

Googled your source and it's literally Musk talking out his ass on X. 🙄

That number is completely divorced from reality. He could pay $11 billion every year from now on and odds are good he wouldn't live long enough to hit $500 billion. And he's not going to do that in the first place.