Some Democrats have urged billionaires to pay taxes when the price of the shares they hold rises, even if they do not sell any shares.
Tesla CEO Elon Musk is asking on Twitter if he should sell 10 percent of his stock in the electric vehicle company amid pressure in Washington to raise taxes on billionaires like him.
Some Democrats have urged billionaires to pay taxes when the price of the shares they hold rises, even if they do not sell any shares. This is a concept called “unrealized gains”, and Musk sits on many of them with a net worth of about $ 300 billion.
“Lately, a lot of unrealized profits are being made which is a way to avoid taxes, so I propose to sell 10 percent of my Tesla shares,” he tweeted on Saturday. “Do you support it?”
At 17:40 Eastern Time (22:40 GMT), just over two hours after Musk’s initial tweet, 54 percent out of a total of 876,189 votes were yes.
Much of Musk’s wealth is held in shares of Tesla, which does not pay him a cash salary. “I only have stock, so the only way I can personally pay taxes is to sell stock,” he tweeted.
Musk, who is known for his sometimes flippant tweets, said he would “stick to the results of this poll”.
I will stick to the results of this poll, no matter what
– Elon Musk (@elonmusk) 6 November 2021