Elon Musk will pay over $11 billion in taxes this year
Elon Musk will pay over $11 billion in taxes this year

The Tesla CEO said in a tweet that Elon Musk expects to pay more than $11 billion in taxes by 2021.

That number roughly coincides with a CNBC report last week that estimated Elon Musk paid $7 billion in federal and state taxes this year. He could pay another $5 billion before January 1st.

CNBC said the numbers could represent one of the largest in-person payments in US history.

The news comes as Musk and other billionaires see increasingly tight controls on how much taxes they pay.

As CNBC reported, Musk did not receive a salary or cash bonus during his tenure as Tesla's CEO, and was instead paid in stock.

If Musk needs the money, he can borrow the money using his stock as collateral, which doesn't have the same tax obligations.

The biggest difference this year is that Musk began selling billions of dollars worth of Tesla stock in early November. This includes paying a total tax rate of over 53%.

The move was apparently the result of a Twitter poll in November in which users voted to sell Musk's 10% stake to Tesla.

However, observers have indicated that Musk will have to pay heavy taxes on stocks due next year.

Sell ​​now instead of waiting until August 2022. Musk could avoid higher tax rates under the Better Reconstruction Act.

Elon Musk has no salary

Reports released earlier this year showed that Musk did not pay federal income taxes in 2018. He paid only $455 million in taxes for the first four years. Although his net worth has increased by $13.9 billion.

He spoke at this year's Code Conference. Musk said he did not pay taxes in 2018 because he paid more than the previous year.

Although Musk appears to have carried out his statement that in 2021 he will pay more taxes than any American in history. But when you consider that he is considered the richest man in the world, it should come as no surprise.

Musk's net worth is currently estimated at $243 billion. That's about $50 billion more than the $195 billion for Amazon founder Jeff Bezos.

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