Elon Musk fact-checks Biden on tax claim

Twitter owner rejects US president’s claim billionaires pay just 3% of their income to government

America’s richest man on Saturday blasted President Joe Biden’s effort to sell voters on tax hikes, claiming billionaires were getting away with paying just 3 percent of their income, on average. to the federal government.

Tesla CEO Elon Musk stepped down after Biden posted a message on Twitter arguing that the mega-rich aren’t paying their fair share of taxes. “Do you know the average taxes billionaires pay?” Biden asked, before answering the question himself with his 3% claim. “No billionaire should pay a lower tax rate than someone who works as a school teacher or firefighter.”

Musk replied: “I paid 53% tax on my Tesla stock options (40% federal and 13% state), so I must be pushing the average up! I also paid more income tax than anyone in the history of the Earth in 2021 and I will do it again in 2022.” He then invited Twitter users of the platform’s Community Notes program to weigh in on whether the 3% figure was accurate.

I paid 53% tax on my Tesla stock options (40% federal and 13% state), so I have to increase the average!

I also paid more income tax than anyone in the history of the Earth in 2021 and will again in 2022.@CommunityNotes, is the 3% number quoted above accurate?

— Elon Musk (@elonmusk) March 18, 2023

Biden has made the claim repeatedly as he promotes his push to raise taxes on high-income Americans. When he made the same claim in a speech last month, PolitiFact pointed out that it was false. “Under current laws, the 25 highest-earning billionaires paid an average tax rate of 16 percent,” the fact-checking outlet said. The group added that most teachers and firefighters fall within an income range with effective tax rates of zero to 15 percent.

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Biden’s 2024 budget proposal calls for raising tax rates on individuals earning more than $400,000 a year and married couples earning more than $450,000. He has also demanded a minimum tax of 25% on Americans with fortunes above $100 million.

“Look, I think you should be able to be a billionaire if you can earn it, but just pay your fair share,” Biden said. “I think you should pay a minimum tax of 25%. It’s about basic justice.”

Musk replied: “I certainly agree that everyone should pay taxes and not engage in elaborate tax avoidance schemes.” These schemes are not necessary for low-income Americans because more than 40% of American households pay no federal income tax.

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