Billionaire Elon Musk is a visionary genius or a hateful internet troll, depending on who you ask, but one thing is for sure about the man. He knows how to look out for his own interests.
While his Tesla (TSLA) was once the darling of the EV movement (a status which has long since eroded,) some have lost faith in Musk's plans. Tesla's stock has fallen to a 10-month low, and many investors have downgraded the company as well as cutting their positions.
Related: Despite Tesla's 'category 5 hurricane,' top analyst remains devoted
However, Tesla's executives remain quite faithful indeed – and a new study has just revealed more about the reason why.
The study highlights several companies that pay their top executives more than they pay in federal taxes, with many of the highest-profiting ones paying no taxes at all.
While the list contains several high-profile names such as Netflix, Ford, Salesforce, and T-Mobile, the company withholding the highest amount of money is Tesla. According to the data, five-year executive pay is $2.5 billion, while five-year U.S. profit is $4.4 billion. However, five-year Federal Income Tax paid sits at zero.
REPORT: Between 2018 and 2022, 35 major U.S. corporations—like Ford, Netflix and Tesla—paid their executives MORE than they paid in federal income taxes.
— Americans For Tax Fairness (@4TaxFairness) March 13, 2024
Many even had a negative tax rate—meaning we gave THEM a refund—while executives got 7- and 8-figure salaries.
A thread 🧵 pic.twitter.com/cN647Em06m
The study comes from The Institute for Policy Studies and Americans for Tax Fairness, a political advocacy group dedicated to evening out the tax burden between everyday people and the rich.
While the matter of Tesla not paying taxes has been addressed before, the study goes into detail, pointing out just how many businesses are doing it and the concerning comparison between how much company executives are paid and how much tax those companies pay.
As shocking as the numbers might be to some, these moves are perfectly legal due to a mix of loopholes the rich use, including foundations, property, gifting, investments, family offices, and moving residency.
Sen. Elizabeth Warren (D-Mass.) has long been a vocal advocate for changing the way the ultra-rich are taxed, introducing the Ultra-Millionaire Tax during her presidential campaign in 2020. Warren's plan was aimed at the richest 0.1%, with every household making over $50 million paying two cents on each dollar above that number, and another four cents for every dollar above $1 billion.
According to Warren, this tax would "generate nearly $3 trillion over the next 10 years."
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