Elizabeth Warren Claims That Elon Musk, Who Paid Largest Tax Bill in U.S. History, Pays No Taxes

Tesla CEO and Twitter iconoclast Elon Musk once called Elizabeth Warren “Senator Karen,” and frankly, it’s easy to see why. Over the weekend, the far-left Massachusetts Democrat yet again unfairly attacked the billionaire—this time, lying about how much he pays in taxes.

During an appearance on CNN’s New Day, Warren was asked about the fact that Musk just donated billions in Tesla stock to charity. 

“I’m delighted that he did this,” Warren responded. “I also believe, however, that billionaires ought to be paying taxes—and it shouldn’t be optional.”

(Um… it’s not?)

SEN. WARREN: “You know how much [Elon Musk] paid in taxes, one of the richest people in the world? Zero! And he’s not the only one. Jeff Bezos, another one of the richest people in the world, he pays less in taxes than a public school teacher or a firefighter.” pic.twitter.com/8glWry5lWz

— Breaking911 (@Breaking911) February 20, 2022

“Elon Musk in 2018, we’ve actually seen his tax returns,” she said. “You know how much he paid in taxes? One of the richest people in the world: zero.”

This is a lie. 

Yes, it is true that in 2018, Musk paid no income tax—because, after writing off losses and deductions, he had no net taxable income. In fact, he does not take a salary from Tesla, other than the required California minimum wage of roughly $37,000/year. Musk’s billions in compensation come from receiving Tesla stock. So, of course, he doesn’t pay income taxes—they only apply to, well, income. 

But this does not validate Warren’s claim that Musk pays “zero in taxes.” Income tax is not the only tax! (I wish…)

Not even close. Musk must pay corporate and payroll taxes through Tesla, California state taxes, sales taxes on his massive purchases, property taxes, and too many other taxes to count. 

And, when Musk cashes out his stock options, he has to pay massive taxes. For 2021, Musk reportedly faced the biggest federal tax bill in history after selling stock options, with estimates of what he owes ranging from $8.3 billion to $15 billion. 

To say Musk pays “zero taxes” because he did not—in one specific year—have to pay anything for one specific tax is more than just a falsity. For a woman as intelligent and well-versed in federal policy as Elizabeth Warren, it is a lie.

And if you opened your eyes for 2 seconds, you would realize I will pay more taxes than any American in history this year

— Elon Musk (@elonmusk) December 14, 2021

Please don’t call the manager on me, Senator Karen 🙏

— Elon Musk (@elonmusk) December 14, 2021

But the senator kept going.

 “And [Musk] is not the only one,” Warren continued. “Jeff Bezos, another one of the richest people in the world, he pays less in taxes than a public school teacher or a firefighter.”

Again she makes the same mistake. This is hilariously inaccurate. In fact, Bezos probably paid more in associated taxes purchasing one of his homes than most teachers or firefighters will over their entire lifetimes. 

We can have good-faith debates about tax policy and whether we really need to “tax the rich.” (Spoiler alert, we already have a highly progressive federal tax system). But it’s simply unacceptable for elected officials like Senator Warren to openly lie about and falsely demonize American entrepreneurs just to push their political narrative. 

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