Elon Musk’s Warning About Government Spending and Unrealized Gains Tax Proposal Highlights Benefits of Bitcoin
A warning from Tesla and Spacex CEO Elon Musk about rising U.S. national debt, government spending, and the proposal to tax unrealized capital gains highlighted the benefits of cryptocurrencies, especially bitcoin.
Elon Musk Says ‘Spending Is the Real Problem’
Tesla CEO Elon Musk made several tweets about the U.S. national debt and government spending last week. He also warned against the proposal to tax unrealized capital gains, targeting billionaires, which was scuttled Friday amid questions as to whether it would even be constitutional.
Musk believes that if the proposal were to go ahead, the government would not stop at billionaires. “Eventually they don’t have any more money for other people and then they come looking for you,” he tweeted early last week.
Commenting on a Washington Post article stating that he would “pay as much as $50 billion under the tax over its first five years, while Bezos could pay as much as $44 billion,” the Tesla CEO tweeted to his 61.7 million followers: “According to their own estimates, this tax only covers ~10% of the $3.5 trillion spending bill. Where will the other 90% come from? The answer is you.”
The Tesla boss explained that the US national debt is currently around $ 28.9 trillion or $ 229,000 per taxpayer, saying that even if all billionaires were taxed at 100%, that would only weaken the number slightly. debt. “The rest must come from the general public,” he stressed. “It’s basic math. Musk elaborated:
Spending is the real problem … U.S. federal debt/GDP was 56% in 2000, now it is 126% & climbing fast.
Musk’s comments garnered a lot of attention. At the time of writing, his tweet has been liked 34,000 times and retweeted 7,123 times.
Some people strongly disagree with Musk, accusing the Tesla billionaire of not understanding economics and avoiding paying taxes. “Has anyone explained money creation to Elon?” One person tweeted.
Several pointed out that his companies are heavily subsidized by the government. One person wrote: “How do you think you became the richest man in the world? Could it have been the $ 5 billion the US government gave you to start your businesses? Another said: “Spacex and Tesla only exist because of government spending. “
A third person acknowledged that “Taxation is theft,” but told Musk: “You’re a hypocrite … Pay back the billions in government subsidies you received first and then you will be able to argue against taxation.”
“Bitcoin has become so valuable”
Meanwhile, many people agreed with Musk on the issue of government spending and rising national debt, saying that’s why they put their money into crypto. Marcelo Claure, CEO of Softbank Group International, simply replied: “Totally agree. “
Lawyer John Deaton described: “The politicians’ intent is so transparent. Classic divide & conquer strategy by employing class warfare. It’s only against the billionaires – Until it isn’t. Do the math.”
Coinbase CEO Brian Armstrong agreed with Musk, saying, “Exactly – it got completely out of hand. If they continue to print to pay down the debt and cover the deficit, it will speed up the switch to crypto. “
The mayor of the city of Miami, Francis Suarez, who has been trying to build his city into a bitcoin hub, chimed in:
This is why bitcoin has become so valuable. A currency / unmanipulable store of value.
On Sunday, Musk said that he would sell his Tesla shares if it would solve the world hunger problem. Responding to a comment from the director of the United Nations World Food Program (WFP) that 2% of its wealth could solve world hunger, Musk wrote: “If WFP can describe on this Twitter thread exactly how 6 billion dollars will solve world hunger, I will sell Tesla shares right away and do it. ” However, he emphasized: “But it must be open source accounting, so the public sees precisely how the money is spent.”