Senator Elizabeth Warren (D-MA) has been feuding with Elon Musk for some time. No matter what the man does, it is certain to rub her the wrong way. No matter her fake Indian heritage, the huge gains from stocks that jump/plummet just as she bought or sold from Nancy Pelosi, or the shameless plug of party over people from The Squad, she truly believes he is one of the worst people in America.
Appearing on CNBC’s “SquawkBox” on March 29th, Warren was given the floor to open up about Musk, and she came fully prepared to unload on the Tesla founder and Technoking of Tesla. “Look, I’m happy to celebrate success, but let’s remember Elon Musk didn’t make it on his own. He got huge investments from the government, from taxpayers, from those public-school teachers, and those minimum wage workers who have been paying their taxes all along to get that business up and running and help see it through rough times… All we’re saying is when you make it to the top, to the very tippy-tippy top, then pay something in so everybody else gets a share.”
This woman has very seriously overlooked everything this man has done. Have his lawyers played the tax game with his investment of any capital gains? Sure. Why? Because he keeps pouring money into growing Tesla, Space X, or any of the other brands he has going on. He is doing the same thing as real estate investors like Ben Mallah or Graham Stephan.
They got their company going, made investments in properties, got them up and making money, and sold them for a large profit. Then, they put that money into bigger deals so they could make it grow even further at a much faster rate. When the deal was favorable, or the market to sell softened, they held their investments, profited off the rental deals, and still made money on the whole thing. By reinvesting the profits quickly, they could avoid taxes.
Any good accountant would tell you about this, how to do it, and how to be successful at it. Yet people like Sen. Warren hate it. It makes no sense how people like her hate someone so badly for taking advantage of the tax codes. Especially when you see his last tax bill. He was the highest-taxed out of anyone in the U.S. by a comma placement or two and paid every penny without complaint. So, realistically, she has nothing to be all that mad at.
Despite that, she did continue her rant. “Elon Musk paying this year, that’s great because he chose to sell some stock — 2018, also one of the richest people in the world. How much did Elon Musk pay that year? We actually saw his taxes that year, and the answer is he paid zero. The public-school teacher did not have the option to pay zero in 2018 or in 2020.” Unfortunately for her, this isn’t entirely correct.
Just as Musk reinvested in the company and left himself on the hook for no taxes, public-school teachers could do the same. They could make investments and make some profits along the way. Unfortunately, besides their retirement plan and their 401K (if their district offers it) they often lack the resources to invest that money. Between paying for room expenses and trying to keep a roof over their heads their money disappears far too fast.
Senator Warren is now perfect at playing the cards about certain people being richer than her and trying to shame others for having more than another. Instead of comparing Musk to a teacher, she should compare him to Pelosi. They both have a huge audience who hates them, and both make miraculous investments with huge profits. The only real difference is Pelosi needs insider info, Musk makes the info happen. If Warren doesn’t like the tax law, maybe she should push for reform?