Billionaire Elon Musk took to Twitter on Nov. 6 to ask his followers if he should sell 10 per cent of his Tesla stock and promised to "abide by the results of this poll, whichever way it goes".
He did not say exactly what would happen after he liquidates 10 per cent of his position.
He currently holds 170.5 million shares in Tesla.
"Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock," the electric car maker's CEO wrote.
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.— Elon Musk (@elonmusk) November 6, 2021
Do you support this?
I will abide by the results of this poll, whichever way it goes— Elon Musk (@elonmusk) November 6, 2021
Why is Musk asking about selling his Tesla stock?
Musk is hitting back at proposals in Washington that would tax billionaires' net worth gains.
U.S. tax law currently taxes assets like stocks only when they are sold, as they will be realised as capital gains.
The wealthiest in America hold massive stock portfolios -- where the richest 10 per cent of Americans hold 89 per cent of all U.S. stocks -- that accrue in value to translate to unrealised gains.
Musk previously slammed a Democratic proposal in October to institute a billionaires' tax.
The idea was floated to help fund a social spending and safety net expansion bill.
Musk characterised it as the start of a new campaign from the left to redistribute wealth from the richest Americans.
He wrote on Twitter: "Eventually, they run out of other people's money and then they come for you."
Exactly. Eventually, they run out of other people’s money and then they come for you.— Elon Musk (@elonmusk) October 26, 2021
In a separate tweet, Musk said the private sector can better manage any government-induced reallocation of wealth.
Who is best at capital allocation – government or entrepreneurs – is indeed what it comes down to.— Elon Musk (@elonmusk) October 26, 2021
The tricksters will conflate capital allocation with consumption.
"Who is best at capital allocation — government or entrepreneurs — is indeed what it comes down to," he wrote on Twitter.
"The tricksters will conflate capital allocation with consumption."
Musk's net worth ballooned in 2021 to US$335 billion as Tesla stock soared.
Musk is the world's richest man, and most possibly the richest to have ever walked the Earth.
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