SpaceX founder and Tesla CEO Elon Musk holds a helmet as he visits the development website of Tesla’s gigafactory in Gruenheide, close to Berlin, Germany, May 17, 2021.

Michele Tantussi | Reuters

Elon Musk on Saturday requested hundreds of thousands of his Twitter followers to find out the way forward for a bit of his Tesla holdings.

Responding to criticism that he is prevented paying his fair proportion of taxes, the Tesla CEO requested customers to resolve whether or not or not he ought to maintain or promote 10% of his inventory.

“Much is made these days of unrealized beneficial properties being a way of tax avoidance, so I suggest promoting 10% of my Tesla inventory. Do you assist this?” he mentioned. Musk added a ballot operate, so customers may vote “Yes” or “No.”

“I’ll abide by the outcomes of this ballot, whichever manner it goes,” Musk, one of many world’s richest folks, added. It wasn’t instantly clear what that proposed sale would quantity to or what the tax fee can be. As of final December, Musk owned about 22.4% of the corporate’s shares excellent, in accordance with The Wall Street Journal.

Billionaires can profit from tax-avoidance methods not provided to folks whose earnings come from typical wage earnings. Extreme wealth is usually largely primarily based on the rising worth of inventory and actual property that isn’t thought-about taxable except these belongings are bought. That’s the place the ten% unrealized achieve is available in: If Musk sells, he’ll be taxed.

Earlier this summer season, ProPublica, an investigative information website, reported on Musk’s tax invoice as a part of an enormous evaluation of billionaires’ funds. The outlet discovered that Musk’s earnings tax invoice amounted to zero in 2018. Musk later shot again, saying the reporting was “difficult” and “deceptive.” He added the quantity was so low as a result of he doesn’t draw a wage, so his money compensation is near zero.

“Note, I don’t take a money wage or bonus from wherever. I solely have inventory, thus the one manner for me to pay taxes personally is to promote inventory,” he mentioned on Saturday.

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