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Elon Musk proposes selling 10% of his Tesla stock in a Twitter poll


Tesla ($1.2 trillion) is now worth more than the entire market value of the S&P 500’s energy sector ($1.1 trillion).


Billionaire Elon Musk on Saturday asked his Twitter followers to decide whether he should sell 10% of his Tesla stock, promising to "abide by the results of this poll, whichever way it goes."

"Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock," the electric car maker's CEO said. He did not directly specify where that 10% would go.

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This isn't the first time Musk has taken aim at proposals in Washington that would tax billionaires' net worth gains. Under current US tax law, assets like stocks are taxed only when they're sold — what's called a capital gain. But the richest of the rich in America probably aren't selling off their massive stock portfolios; instead, their main form of income is the value that those assets accrue, or unrealized gains.

Musk last month slammed a Democratic proposal to institute a billionaires' tax, floated to help fund a social spending and safety net expansion bill, saying it represented the start of a new campaign from the left to redistribute wealth from the richest Americans.

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Social spending and safety net...I see. They can start by paying each homeless person on the streets of San Fran Psycho, say, $450,000!
Just a way of saying thanks for making that fair city clean, attractive, and a major draw for the discarded needle and fecestourism industry.
 

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So what is going to happen to my 401k if all the uber rich start selling their holdings to avoid taxation on their unrealized gains?
It'll tank...............

And I think you mean "when" not "if"?

The beauty is you can go to "cash" in your 401K and don't have to pay taxes on the realized gains.
 
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So what is going to happen to my 401k if all the uber rich start selling their holdings to avoid taxation on their unrealized gains?
Why would that solve the issue? Then they'd be paying taxes on realized gains.

Unrealized gains will never be taxed, because then you'd have to credit for unrealized losses.
 

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Why would that solve the issue? Then they'd be paying taxes on realized gains.

Unrealized gains will never be taxed, because then you'd have to credit for unrealized losses.
Don't say never - Biden is thinking about taxing the uber-rich person's unrealized gains. I fear that will trigger them to change how they manage their money and perhaps put it into something different, meaning sell their stock holdings. Being that those top, super rich people have so much money I'm assuming they'd have a material, negative impact on the market.

I think taxing unrealized gains is crazy. Sure, it's upside today, but what would happen in a market correction when these people have massive unrealized losses? Is the government going to pony up a trillion or two in refunds? And, it could trigger the rich to sell stock simply to cover the cost of the tax, again flooding the market. This has nothing but downside for the middle class. Just a very poorly thought out idea - it shouldn't even be at the level that Biden is thinking about it.
 

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Don't say never - Biden is thinking about taxing the uber-rich person's unrealized gains. I fear that will trigger them to change how they manage their money and perhaps put it into something different, meaning sell their stock holdings. Being that those top, super rich people have so much money I'm assuming they'd have a material, negative impact on the market.

I think taxing unrealized gains is crazy. Sure, it's upside today, but what would happen in a market correction when these people have massive unrealized losses? Is the government going to pony up a trillion or two in refunds? And, it could trigger the rich to sell stock simply to cover the cost of the tax, again flooding the market. This has nothing but downside for the middle class. Just a very poorly thought out idea - it shouldn't even be at the level that Biden is thinking about it.
I'm not a Biden fan but it's not his plan. Sen. Ron Wyden is the fool who thought of it.
 

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I think he should give me 1% of his Tesla stock. He'll never miss it, and I might even take a Tesla for a test drive in return.
 

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I think he should give me 1% of his Tesla stock. He'll never miss it, and I might even take a Tesla for a test drive in return.
I'll take the other 9%.
Then I can barge into meetings, say the Cybertruck looks like $%^& and they should start over.
If they actually release that abomination, I'll sell it and buy Rivian.
 

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They only time these holdings should even be considered taxed is when they are used as collateral for the recognized value against whatever loan you are using it for. If its sitting in your investing account then it shouldnt be taxed.
 

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They only time these holdings should even be considered taxed is when they are used as collateral for the recognized value against whatever loan you are using it for. If its sitting in your investing account then it shouldnt be taxed.
Bingo!
 

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I'm not a Biden fan but it's not his plan. Sen. Ron Wyden is the fool who thought of it.
Doesn't matter who came up with it, Janet Yellen is (was) trying to sell it.......... And if you've paid ANY attention, she doesn't say anything out of line with what whomever is telling her to say.

"As U.S. Secretary Janet Yellen has been discussing in various media, the Biden administration is now revealing an unrealized capital gains tax from stocks and bonds. The plan will be included in the Democrats’ US$ 2 trillion reconciliation bill. The new “Billionaire Income Tax” is being written by Senate Finance Committee Chairman Ron Wyden (Democrat from Oregon), with input from the U.S. Treasury Department and the White House."

 
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