If Elon Musk became an official in the Trump administration, he could be granted a tax break for life, while telling everyone else to tighten belt.
FORTUNE – Elon Musk could reap a whopping tax break if he joins a Trump administration – BY Greg McKenna – October 25, 2024 When the proceeds from such divestment are put in say, a mutual fund, the taxes are technically deferred until the new assets are sold. If they are never sold, however, that deferral effectively becomes permanent. A request for comment directed at Musk, sent to Tesla, SpaceX, and Neuralink, was not immediately returned. Former Goldman Sachs CEO’s tax deferral pales in comparison. Musk would not be the first high-profile business leader to make use of the provision, which was instituted in 1992 to avoid deterring wealthy individuals from taking government posts. When Henry Paulson left his job as CEO and chairman of Goldman Sachs to become treasury secretary under George W. Bush in 2006, his divested holdings were reportedly worth nearly $500 million. If Jamie Dimon took the same role, the JPMorgan Chase chief executive would likely have the same opportunity.
NBC NEWS – Elon Musk asks voters to brace for economic ‘hardship,’ deep spending cuts in potential Trump Cabinet role Donald Trump wants the Tesla and SpaceX CEO, who himself has taken in billions from federal contracts, to oversee “efficiency” efforts for the government. Oct. 30, 2024, 10:39 AM EDT / Updated Nov. 1, 2024, 10:07 AM EDT By Rob Wile and Lora Kolodny, CNBC “We have to reduce spending to live within our means,” Musk said. “And, you know, that necessarily involves some temporary hardship, but it will ensure long-term prosperity.” Many economists agree that Trump’s economic and fiscal proposals could spark an economic calamity, though it is not clear whether they have considered, or given credence, to Musk’s calls for austerity. In a joint letter released last week, 23 Nobel Memorial Prize-winning economists warned that Trump’s plans for tariffs, tax cuts and an immigration crackdown — including detaining and deporting millions of people — would “lead to higher prices, larger deficits, and greater inequality.” More than anything, they wrote, Trump would undermine the rule of law and political certainty, “the most important determinants of economic success.”