Elon Musk checks facts on Biden’s tax claims – Reuters

The owner of Twitter denied the US president’s claim that billionaires only pay the government 3% of their income.

America’s richest man on Saturday disputed President Joe Biden’s attempts to sell voters tax increases, saying billionaires get away with paying an average of just 3% of their income to the federal government.

Tesla CEO Elon Musk spoke out after Biden tweeted a message alleging that the mega-rich weren’t paying their fair share of taxes. “Do you know what average taxes billionaires pay? Biden asked before answering the question himself with his 3 percent demand. “No billionaire should pay less taxes than a teacher or a firefighter. »

Musk responded, “I paid 53% tax on my Tesla stock options (40% federal and 13% state), so I have to raise the average! I also paid more income tax than anyone else in Earth’s history in 2021 and will do so again in 2022.”

Biden has made this point repeatedly as he promotes his efforts to raise taxes for high-income Americans. When he made the same claim in a speech last month, PolitiFact pointed out that it was not true. “Under today’s laws, the top 25 billionaires pay an average tax rate of 16%,” the report said. The group added that most teachers and firefighters are in the income group with an effective tax rate of zero to 15%.

Biden’s 2024 budget proposal includes higher tax rates for people with incomes above $400,000 a year and married couples making more than $450,000. He also demanded a minimum tax of 25% for Americans with wealth in excess of $100 million.

“Look, I think you can be a billionaire if you can make it, but just pay your fair share,” Biden said. “I think you should pay a minimum tax of 25%. This is a matter of fundamental justice.

Musk responded, “I fully agree that everyone should pay their taxes and not engage in complex tax avoidance schemes. Such plans are not needed for low-income Americans, since more than 40% of American households do not pay federal income tax.

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