The world had been given a glance at the realities of wealth as tax groups report that Space X and Tesla CEO, Elon Musk would have paid $4.1 billion under the recently proposed Ultra-Millionaire Tax Act.
The act, which was passed by Senator Elizabeth Warren on Monday, has the intent of edging the wealth gap by further taxing America’s 110 richest households ( the top .05%). With a 2% annual tax for homeowners of a net worth between $500,000 and $1 billion (3% for anyone higher the $1 billion), the bill would better serve families who were socioeconomically hindered by the pandemic.
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Warren cited a University of California Berkeley analytic which showed the bill accumulating a whopping $3 trillion over the span of 10 years. Her plans for the federal funds from the Ultra-Millionaire Tax Act would be put into establishing government programs to improve the nation’s education and infrastructure.
As the rich continue getting richer, Musk stands as the second most wealthy person in America – with retired Amazon CEO Jeff Bezos topping him with a net worth of $196 billion. The infamous CEO of Tesla would have hypnotically paid $4.6 billion in taxes last year, had the bill been past. His taxes would have been greater than the combined wealth of the 664 richest households.
The bill, which plans to make billionaires account for half the total of all taxes, may put a wrench in Musk’s plans for a future colony on Mars. In an interview conducted by Mathias Döpfner, the billionaire lays out his plans of selling all his possessions to fund the daunting venture.
“In fact, I’ll have basically almost no possessions with a monetary value, apart from the stock in the companies,” Musk says.
His interest in space accounts for a hefty portion of his income, as he legally receives minimum wage from his position at Telsa. On February 23rd, his company, SpaceX confirmed that they’d raised $850 million over the past months. Investors like James Murray of PJT Partners seem to see the prospects of space exploration and are more than willing to hand over funds.
“It has never been a better time to raise money for ventures in and around space,” says Murray.
While Musk puts his seemingly endless richest to the sky – and other billionaires continue to live in luxury – Senator Warren hopes to utilize the Ultra-Millionaire Tax Act to lift the weight of taxes off struggling households of our country.
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Sources: Business Insider, Americans For Tax Fairness
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