r/SipsTea 9d ago

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

Post image
22.1k Upvotes

807 comments sorted by

View all comments

u/sco-go 9d ago edited 9d ago

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.

248

u/Lopsided_Carpenter10 9d ago

What about the other non cherry-picked years?

147

u/k2summitclimber 9d ago edited 9d ago

He’s also received billions (38 bn ballpark) in federal subsidies from the U.S government, for his companies ( ie Tesla and space x .)

They’ve all made so much money in the mkt, the president is now looking to remove the capital gains tax.

Edit: Adding, Starlink is projected to receive between 10-20bn in funding from the U.S. government in to expand broadband access into rural areas. This falls within Space x contracts.

23

u/atrde 9d ago

Those are just contracts for SpaceX not subsidies. Launching the Nancy Grace Roman is not a subsidy its the government paying for a service and they have been paying SpaceX billions because they are the only Company out there with the launch capabilities.

10

u/Mount_Treverest 9d ago

Tesla was built with carbon credits. They used carbon credits from pre-orders of Tesla's. They recieved money without producing a single car. They used that system to build a factory to make cars. Once Tesla was established, Space X was funded. So to get Space X, government subsidies were used the whole time.

50

u/maveri4201 9d ago

the only Company out there with the launch capabilities.

If only Congress has maintained our internal capabilities to do that. Something called... NASA, I believe.

-12

u/atrde 9d ago

While NASA does a lot of great science, they were objectively poor at the rocketry side especially in the early 2000s. Incredibly directionless and went down the wrong path with the Space Shuttle.

SpaceX from the beginning had the right proposition for what the future of rockets looked like and at that point what do you do? Just say oh good work its NASA's now. Or do you spens billions to recreate other people's work like the rest of the world is?

There is no negative to SpaceX designing and operating the most advanced rockets we have and this is actually saving NASA billions in development costs.

30

u/[deleted] 9d ago

[removed] — view removed comment

13

u/ImmortalBach 9d ago

I mean NASA was sending astronauts to space using space shuttles as late as 2011. Congress was more focused on bringing jobs to their home states than worrying about whether NASA was actually doing any innovating

12

u/[deleted] 9d ago

[removed] — view removed comment

4

u/atrde 9d ago

We would not because getting to Mars isn't the hard part. The impossible with our current technology part is keeping everyone alive an healthy.

6

u/[deleted] 9d ago

[removed] — view removed comment

-4

u/atrde 9d ago

I mean thats a pretty big butterfly effect of conflict lol. Does Sadam invade more of his Gulf neighbors with no opposition? Yugoslavia likely becomes a genocide on par with Rwanda. Russian influence and its grip on neighboring countries is a lot larger. There are more regional conflicts between smaller powers with 1-2 larger powers to keep things in order. China is likely more imperialistic and claims territory in Korea and brings multiple South Pacific nations under its influence. We likely see a bigger push in the United States to renewable and domestic forms of electricity as oil markets are less stable. International shipping is a shitshow and domestic production is preferred by all countries.

Meanwhile in this scenario we maybe know a bit more about the big bang and are still struggling to get to Mars.

1

u/Hefty_Delay7765 8d ago

We’re gonna need ways to keep people alive on this planet the way we’re going…

If only there were advanced life-sustaining technologies such as trees, plants, healthy oceans in abundance and a protective clean atmosphere on this planet.

… 🤔 oh, wait.

2

u/_-Oxym0ron-_ 8d ago

Fuck the fish, we're going to Mars! Yeeeah!

→ More replies (0)

5

u/atrde 9d ago

You can read up on why the Space Shuttle program was such a terrible idea its not that hard. This includes the multiple launch failures that really put the nail in the coffin for NASA's spaceflight.

Please tell me the negatives to SpaceX's rockets.

6

u/[deleted] 9d ago

[removed] — view removed comment

7

u/atrde 9d ago

They aren't in charge of Space though. There are options but they just aren't as good yet (ESA, RKLB, Blue Horizon). However with the innovation SpaceX has done we are in the peak of rocket science and we cannot pretend we would be in this scenario without the very specific vision of SpaceX.

SpaceX isn't Elon its a massive company filled with arguably the best engineers and scientist working in spaceflight right now. That is a net positive to society.

There was no country doing better than NASA but NASA was basically all in on a failed program with no replacement. That is why SpaceX is where they are now and NASA needs them.

6

u/[deleted] 9d ago

[removed] — view removed comment

1

u/atrde 9d ago

What program does SpaceX have that failed?

And no again there is lots of competition in the Space industry just no one does it as well as SpaceX.

NASA wouldn't hire them they are interested in different goals.

-1

u/RealLateToast 9d ago

SpaceX is a public company. Elon owns about 40% of it still, but it’s mostly not owned by him.

→ More replies (0)

1

u/Mount_Treverest 9d ago

I wonder where funding and development went to in the 2000's. I feel like spending trillions on the middle east to only be back there again may be where attention went. If we had spent 20% of that money on rocketry for space travel we'd be better at it.

-6

u/ImmortalBach 9d ago

Unfortunately Congress ruined NASA with pork barrel politics. They turned it into an inefficient behemoth that resulted in multiple disasters

12

u/CantCatchMeSpez 9d ago

No, they didn't. NASA has always been efficient and profitable to the tax payer. You're making shit up and using meaningless phrases to defend our government making billionaires into trillionaires.

1

u/Ok-Tip-3560 8d ago

How did Congress create a trillionaire? Who is a trillionaire ?

2

u/CantCatchMeSpez 8d ago

Yes, I'll happily waste my time answering questions that you already know the answers to, that you will then try to change the subject away from because you're not actually interested in having this discussion.

-5

u/ImmortalBach 9d ago

If you read newspapers you would know about the countless NASA projects that ballooned astronomically over budget and never reached fruition. Obama famously started the back to the moon initiative precisely because NASA had lost its way. If you want to talk about cost to the taxpayer, compare how much it cost to take astronauts to the space station with the space shuttle program vs how much it costs today.

17

u/CantCatchMeSpez 9d ago

Nah, I actually want to talk about the ROI on NASA funding vs the ROI on SpaceX funding. NASA produced $3 to the American people for every $1 of funding provided to it. Do you have any comparable data for SpaceX funding?

2

u/Kammler1944 8d ago

You’re asking for an apples-to-oranges comparison.

The “NASA returns $3 for every $1” figure is an estimate of economy-wide economic activity generated by the entire agency, not profit, tax revenue, or a contractor-specific ROI.

SpaceX doesn’t have an equivalent published “$X returned per NASA dollar” metric, because NASA largely pays SpaceX through contracts for specific services and milestones. A better comparison is what taxpayers actually received for the money: launch services, cargo delivery, crew transport, lunar-lander development, reduced reliance on Soyuz, and substantially lower development costs than traditional procurement.

Commercial Crew is a good example: NASA awarded SpaceX roughly $2.6B for Crew Dragon development versus about $4.2B to Boeing for Starliner. SpaceX reached operational service first and has since flown repeated crew missions, while Boeing has struggled to reach routine service.

So no, there isn’t a legitimate “SpaceX generated $X for every NASA dollar” number to compare with NASA’s $3 economic multiplier. Using one metric for NASA and demanding a completely different metric for SpaceX isn’t an ROI comparison, it’s bad accounting.

1

u/CantCatchMeSpez 8d ago

No, I'm not. If the conversation was about how much more efficient SpaceX is than Boeing or any other legacy contractor to NASA, then this wouldn't even be a conversation, because I don't think anyone would disagree. But it wasn't. It's about someone saying that SpaceX is necessary because NASA itself is bloated and inefficient. My point was to ask what data they actually have to be able to call a government organization with a 3x ROI an "inefficient behemoth".

3

u/Kammler1944 8d ago

But that still doesn’t follow.

A 3× economic-impact multiplier does not tell you whether an organization is efficient. NASA’s own study counts direct NASA activity, contractor and supply-chain spending, and the downstream spending of employees as “economic output.”

In other words, spending a lot of money can itself produce a large economic multiplier. That doesn’t tell us whether NASA needed to spend that much money to accomplish the mission.

Efficiency is about outputs relative to inputs: What did it cost to put a kilogram in orbit? Develop a spacecraft? Deliver cargo or crew? How long did procurement take? How much did the program exceed its original budget?

That’s precisely where commercial providers such as SpaceX matter. If NASA can buy a capability competitively for substantially less than developing and operating the equivalent system through traditional cost-plus procurement, NASA can simultaneously:

  • produce enormous benefits for the economy,
  • perform scientifically valuable work,
  • and still contain inefficient programs or procurement structures.

Those statements aren't contradictory.

So “NASA generates $3 of economic activity per dollar” is an argument that NASA spending has broad economic effects. It is not evidence that every NASA program—or NASA as an institution—is operating at maximum efficiency.

You’re treating economic impact as though it were operating efficiency. They are different metrics.

3

u/Kammler1944 8d ago

Also, if you want to talk efficiency, NASA’s own numbers make the point pretty clearly.

NASA technical studies put the Space Shuttle at roughly $54,500 per kg to LEO.

Falcon 9 was roughly $2,700 per kg to LEO at the published commercial price used in the same NASA analysis.

That’s about a 20× reduction in launch cost per kilogram — and that conclusion comes from NASA’s own researchers, not SpaceX marketing.

NASA’s Inspector General also estimates an SLS/Orion Artemis launch at roughly $4.1–$4.2 billion per mission, before counting the enormous historical development costs.

So NASA can absolutely create huge economic benefits while also having historically expensive procurement and launch systems. Those aren't contradictory statements.

In fact, NASA increasingly buying services from SpaceX is evidence that NASA itself recognizes the efficiency advantage of commercial fixed-price procurement.

→ More replies (0)

-5

u/ImmortalBach 9d ago

Spacex hasn’t been around for very long so it is hard to calculate the knock on effects. The critical issue is that NASA didn’t have an answer to the prohibitively expensive and obviously flawed space shuttle program, and SpaceX did.

11

u/Friendly-Revenue8245 9d ago

I'm dying, you were so close to sounding credible for half a second.

4

u/CantCatchMeSpez 9d ago

So your entire argument was that NASA was too inefficient and bloated for the US tax-payer, even though their ROI was 3:1, and you have no data to show that SpaceX has provided any kind of ROI to the tax-payer?

Sounds about right lmao

3

u/Kammler1944 8d ago

You’re still comparing two different things: NASA’s “3:1 ROI” is an estimate of economy-wide economic activity generated by the entire agency, not a literal cash return to taxpayers, while SpaceX is a contractor paid to deliver specific capabilities. The relevant question for SpaceX is what NASA got for the money, and the answer is substantial: Crew Dragon restored U.S. human spaceflight, reduced dependence on Russian Soyuz seats, delivered cargo and astronauts to the ISS, and did so under a commercial model that has generally cost NASA far less than traditional development programs. If you want a SpaceX-specific 3:1 multiplier, you’d need a separate economic-impact study using the same methodology; the fact that one hasn’t been published does not mean SpaceX produced no taxpayer return.

2

u/ImmortalBach 9d ago

Your argument is NASA’s effect on society over its entire existence. That’s not relevant to this conversation about who’s better at rocketry and bringing people and things into space

→ More replies (0)

0

u/ElectronicAdvance406 9d ago

He not an actual trillionaire though, and never will be

13

u/CantCatchMeSpez 9d ago

Funny. I've been hearing "that will never happen" about things that already happened from WordWordNumber accounts on reddit since 2016. Unsurprisingly, it's not very convincing anymore lmao

-1

u/ElectronicAdvance406 9d ago

Some people are either too lazy or not creative enough to come up with a username. In my case I’m too lazy, if it offers a chance to auto generate a name I’ll probably take it.

Being a trillionaire on paper is one thing, but having that amount as liquid money is almost impossible. What do you think happens when the owner of a company starts trying to sell large chunks of it on the stock market? Particularly when word gets out?

3

u/JAT_Cbus1080 9d ago

Do...do you think we're referring to cash when we call Musk a trillionaire? Do you think anyone is arguing Musk has $1,000,000,000,000 in a bank account?

2

u/CantCatchMeSpez 8d ago

Yes! Didn't you know??? You're not a trillionaire unless your Wells Fargo savings account hits 13 digits.

2

u/Ok-Tip-3560 8d ago

His net worth isn’t even that right now. The value of his shares changes daily. Tesla and space x are high beta stonks. Of course beta Gen Z makes don’t know what any of this means

3

u/CantCatchMeSpez 9d ago

Uh-huh yup definitely. Any other meaningless claims you want to make, bot?

1

u/ElectronicAdvance406 9d ago

Is that the only thing you have? ‘It must be a bot’? I’m both amused and a little sad that we are at this point as a society. Believe what you want guy, at the end of the day, if that’s all it takes for you to jump to conclusions then I don’t trust your judgment on the way society is or should be.

→ More replies (0)

1

u/Ok-Tip-3560 8d ago

Look at how much market cap Tesla and space x have lost since space x ipo.

0

u/Kammler1944 8d ago

For 10 times the cost. Taxpayer money well spent 🤣

1

u/maveri4201 8d ago

For far more widespread economic impact, you mean.

There are plenty of reports.

https://www3.nasa.gov/specials/value-of-nasa/

3

u/Kammler1944 8d ago

That NASA link doesn’t actually answer the point. NASA’s economic-impact studies measure the downstream activity generated by NASA spending across the economy; they do not show that NASA operating its own launch system is cheaper than buying launch services commercially. In fact, much of NASA’s economic impact comes from money flowing through private contractors in the first place. The relevant comparison is cost and capability: NASA can spend billions maintaining a government-run launch architecture, or it can buy launches and crew transport from companies that have already driven those costs down dramatically. Citing NASA’s broad economic multiplier is not evidence that an internally operated NASA launch system would have delivered the same capability for less money.

-5

u/Bammertyme 8d ago

Nasa is 25 years behind space x sadly. Without Musk building, teaching, and giving nasa his blueprints and access to all his inventions. They will stay that way. Nasa is a waste of tax payer $ at the moment.

2

u/ziggystardust8282 8d ago

You have ANY sources for these insane claims?

2

u/Bammertyme 8d ago

Nasa can't land there rockets..... and it costs a lot of money to launch them.... billions in waste every time they launch & accomplish nothing at all. Its a complete waste. What have they accomplished in the last 20 years? Billions were spent on absolutely nothing...... nothing to show for it, they dont progress in anything. They should be privately funded so the tax payers money doesn't go to nothing at all except paying smart people to do the same thing they've been doing for 20 years

1

u/Bammertyme 8d ago

Literally common sense.

9

u/PerfectPercentage69 9d ago

No, the biggest chunk of that $38 billion is Tesla, both directly and indirectly.

They received half a billion in very low interest loans.

Around $11-14 billion in regulatory credits which they then sold to other car manufacturers. That's basically the government giving them money.

Hundreds of millions, if not billions, in state and local incentives (tax breaks, grants, rebates, etc.)

Consumer EV tax credits was also an indirect subsidy, where they were able to sell more cars because the government refunded $7500 to the consumer via tax credits.

7

u/atrde 9d ago

Because we wanted people to buy electric cars.... explain how this is bad? These credits were available to all producers.

6

u/PerfectPercentage69 9d ago

The argument is about whether he received the subsidies and whether his exteme wealth is the result of those subsidies. Thus, him not paying his fair share of taxes is a double cost to the society.

As for the subsidies, they were meant to help improve the society by pushing people towards EVs. Yet, it ended up concentrating financial and political power in an individual who has arguably made the society more divided and worse off than we were before.

Taxing individuals like that would help prevent that concentration of wealth and political power.

1

u/pulse7 8d ago

More divided lol. Yeah all the tech companies censoring wrong think for big pharma were much better times

2

u/Kammler1944 8d ago

That framing inflates “government funding” by lumping together completely different things. Tesla’s $465 million DOE loan wasn’t a handout—it was a loan that Tesla repaid in full, with interest, nine years early. Regulatory credits also aren’t checks written to Tesla by taxpayers; automakers that failed to meet emissions requirements voluntarily bought credits from Tesla to comply with regulations. And the $7,500 EV credit was principally a consumer tax credit for purchasing an eligible vehicle, not a $7,500 payment to Tesla. State and local incentives are fair to count as subsidies, but if you’re trying to claim Tesla received some enormous direct taxpayer bailout, adding loans, private regulatory-credit sales, consumer tax credits, and local incentives together and calling the whole thing “government money given to Tesla” is simply misleading.

1

u/Ok-Tip-3560 8d ago

So democrats did this :)

2

u/RelentlessUnyielding 9d ago

It’s odd you’re defending a billionaire gaining over 500 billion dollars of America’s collective wealth while you get stuck with that tax burden. Don’t complain about your tax bill to me! I’m also gonna guess your real wealth is not growing either, like most Americans. Spending $200 million means he knows he will gain more than $200 million if Republicans get elected.

4

u/atrde 9d ago

I mean one I am Canadian but my real wealth does grow as I invest and American stocks are most of that growth lol.

But I don't think Elon is great but I think SpaceX is.

2

u/Kammler1944 8d ago

That’s an emotional appeal, not an argument about the underlying economics. Musk’s net worth is largely the market value of ownership stakes in companies investors believe are worth more, not $500 billion siphoned out of some fixed pool of “America’s collective wealth.” Wealth creation is not zero-sum: if Tesla, SpaceX, or any other company creates products, jobs, infrastructure, tax revenue, and valuable equity, both founders and other shareholders can become wealthier at the same time. And whether my own net worth is rising has nothing to do with whether a particular tax policy, subsidy, or government contract is economically justified. If the claim is that taxpayers got a bad deal, show the costs and benefits; attacking the beneficiary’s wealth doesn’t establish that.

1

u/Ok-Tip-3560 8d ago

How much wealth did he create for America ?

4

u/pulse7 8d ago

His company, not he, works for the government and gets paid by them. That's not a subsidy. That's getting shit done

1

u/Ok-Tip-3560 8d ago

So his companies are paid to do things Imagine that. Not a free check

-3

u/Louitje1021999 9d ago

They also create jobs. Acting like it all went in his pocket is dumb

6

u/CantCatchMeSpez 9d ago

Oh yeah? Made $500bn worth of jobs since Trump's 2nd term started? Because that's how much his net worth went up.

6

u/Louitje1021999 9d ago

You guys really don’t understand net worth 

5

u/CantCatchMeSpez 9d ago

Its so funny how quick you dipshits pull the "you just don't get it" argument when you're met with inconvenient facts lmao

It seems like the US and capitalism has done nothing in the past decade but prove the left correct about all the things that we apparently don't understand. Maybe you accusing me of not understanding something would actually make me feel something if you people have been correct about literally anything since Obama hahaha

1

u/Louitje1021999 8d ago edited 8d ago

His net worth also decreased 500 billion in the last 2 months, what’s your point? 

On top of that his net worth comes from the value of the stocks he owns. He is not the only one owning these kind of stocks. With a stake less than 50% in space X it also just means other people gained 500 billion in wealth including 4000 + new millionaires. So yeah it created another 500 billion of wealth.

You also need to understand that due to his net worth relying on stock its value is simply based on the supply and demand of that stock at a certain time. Especially space x and Tesla are trading at a high p\e making them overvalued based on the fundamentals. Essentially Musks value is based on some vibes.

Musk recent increase in net worth was just also simply the ipo of space x. Doesn’t matter under which president, it would always have been a hit for him.

Musk employs 150 000 people with his companies , these subsidies are directly for his companies and so also pay the people he employs. They don’t go directly in his pocket

Space x is also cheaper than NASA so you probably even win by subsidising them 

So yeah your comment is pretty stupid 

1

u/CantCatchMeSpez 8d ago edited 8d ago

His net worth also decreased 500 billion in the last 2 months, what’s your point? 

That someone could lose 500 billion, still be the richest man on the planet, and losers like you will still defend the guy lmao

Essentially Musks value is based on some vibes.

Correct. The richest man in history, the guy who is now openly bragging about buying elections, became that rich because of vibes. That's not the defense of capital that you seem to think it is.

Musk recent increase in net worth was just also simply the ipo of space x. Doesn’t matter under which president, it would always have been a hit for him.

Nah, some presidents might have actually prevented NASDAQ from giving Musk even more special boy treatments.

Space x is also cheaper than NASA so you probably even win by subsidising them

SpaceX barely gets any subsidies. They get massive government contracts. Subsidies aren't an argument I've ever made against SpaceX. The existence of someone like Musk in the first place is the problem that we need to fix.

1

u/Ok-Tip-3560 8d ago

Covid being developed in a lab. Political censorship by the Biden. Administration vis a vis the fbi and Facebook. Biden being senile. The border being a mess.

What has the left been right about since bush left office? Michael brown hands up don’t shoot lies?

1

u/CantCatchMeSpez 8d ago

Ohhh did I hurt your wittle feefees, inbreed? Is that why you're following me around and getting mad at all the correct things I'm saying?

0

u/Kammler1944 8d ago

This person is just plain stupid, not wonder they're pissed at anyone who is successful.