Elon Musk Argues Proposed Billionaire Tax Will Eventually Target Average Americans Elon Musk issued a warning on Thursday against Democrats' billionaire tax proposal, saying that eventually the government will run out of ultra-wealthy individuals, following which, they will target the majority middle class.

By The Epoch Times Edited by Charles Muselli

Opinions expressed by Entrepreneur contributors are their own.

Elon Musk issued a warning on Thursday against Democrats' billionaire tax proposal that levies unrealized capital gains, saying that eventually the government will run out of ultra-wealthy individuals, following which, they will target the majority middle class.

"US national debt is ~$28,900 billion or ~$229k per taxpayer. Even taxing all "billionaires' at 100% would only make a small dent in that number, so obviously the rest must come from the general public. This is basic math. Spending is the real problem. https://usdebtclock.org" @elonmusk tweeted on Oct. 28.

Chiefly authored by Sen. Ron Wyden, chair of the Senate Finance Committee, the radical 23.8 percent tax rate for long-term capital gains on tradable assets would be targeted at those making a billion dollars or more in annual income or $100 million or more for three consecutive years. This puts around 700 Americans in the bracket whose wealth is mostly concentrated in stocks.

Existing laws prevent the government from taxing "unrealized" gains or unsold stocks. The new law changes that to include unsold stocks and adds them into the individual's income that is subject to taxation. The recently proposed changes by the Democrats are mostly to fund their $2 trillion "Build Back Better" campaign.

The billionaire tax proposal is facing stiff opposition from many Democrats as well, including House Ways and Means Committee Chairman Richard Neal of Massachusetts and West Virginia Sen. Joe Manchin.

"I don't like it. I don't like the connotation that we're targeting different people," Manchin told reporters. He also praised American billionaires' contribution to society through investments, job creation, and philanthropy.

The other critical issue facing the proposal is the legality of whether the Constitution gives Congress the right to tax wealth. It is likely there will be legal challenges if the controversial plan is passed. Opponents can argue that unrealized gains cannot be counted as income, and thus, must not be taxed.

According to Musk, "this tax only covers ~10% of the $3.5 trillion spending bill. Where will the other 90% come from? The answer is you." Musk, with a net worth of almost $284 billion, had recently dethroned Amazon's Jeff Bezos as the richest man on the planet.

A recent surge in Tesla's (TSLA) stock price following the mass purchase by Hertz of 100,000 cars made the company part of the trillion-dollar club. Musk owns more than 20 percent of Tesla shares.

As a response to a supportive tweet, Musk said he is better suited at allocating capital than Treasury Secretary Janet Yellen, "Who is best at capital allocation — government or entrepreneurs — is indeed what it comes down to. The tricksters will conflate capital allocation with consumption."

By Naveen Athrappully

The Epoch Times, founded in 2000, is headquartered in Manhattan, New York, with a mission to provide independent and accurate information free of political bias or corporate influence. The organization was established in response to censorship within China and a lack of global awareness regarding the Chinese regime's repression of the spiritual practice Falun Gong.

The Epoch Times is a widely read newspaper that is distributed in 33 countries and is available in 21 languages. The publication has been critical in providing balanced and detailed reporting on major global events such as the 2003 SARS pandemic and the 2008 financial crisis. Notably, the organization has played a key role in exposing corruption inside China.

Aside from its human rights coverage, The Epoch Times has made significant contributions in a variety of fields. It has received praise for its in-depth analysis and expert perspectives on business, the economy and U.S. politics. The newspaper has also received praise for its broad coverage of these topics.

A series of editorials titled "Nine Commentaries on the Communist Party" appeared in The Epoch Times in 2004. It asserts that freedom and prosperity in China can only be achieved by eliminating the Communist Party, which violated China's cultural and spiritual values. In addition, the organization led the Tuidang movement, which resulted in over 400 million Chinese citizens quitting the Communist Party. In spite of this, 90% of websites referring to the "Nine Commentaries" were blocked by the Chinese regime.

The Epoch Times has been at the forefront of investigating high-level corruption cases within the Chinese regime, with its reporters taking significant risks to uncover these stories. The organization has received several awards for its investigative journalism.

The organization has received several awards for its investigative journalism. For more, visit www.theepochtimes.com.

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