"The Real Issue Is Fiscal Spending"…Musk Criticizes US Democrats' 'Billionaire Tax'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Elon Musk, CEO of Tesla, recently opposed the wealth tax on billionaires being promoted by the U.S. Democratic Party, arguing that increasing taxes on the rich cannot solve the U.S. government debt problem.

On the 27th (local time), Musk tweeted, "Government spending is the real problem," adding, "Even if a 100% tax is imposed on all billionaires, the national debt would only decrease slightly, so clearly the rest of the (fiscal expenditure funds) must come from the general public."

He further stated, "This is a basic math problem," and pointed out, "The real issue is government fiscal spending."

Tesla CEO Elon Musk posted a tweet on the 27th (local time) criticizing the 'billionaire tax' being promoted by the US Democratic Party. [Image source=Captured from Musk's Twitter]

On the same day, Musk also posted a link to a website showing the status of federal government debt.

In another tweet, Musk emphasized, "In 2000, the U.S. federal government's debt-to-GDP ratio was 56%, but now it has reached 126%, and it is rapidly increasing."

He questioned, "The billionaire tax can only cover 10% of the $3.5 trillion budget the government is pushing. So where should the remaining 90% come from?"

Elon Musk, CEO of Tesla, posted a tweet on the 27th (local time) criticizing the 'billionaire tax' being promoted by Congress, stating that the federal government debt is rapidly increasing.

In response to a Twitter user pointing out that taxing the market value increase of held stocks is a tax on unrealized gains, Musk agreed, commenting, "That's right."

Regarding a tweet suggesting that Musk would contribute more to wealth distribution than U.S. Treasury Secretary Janet Yellen, Musk emphasized, "The key is who allocates capital better, the government or entrepreneurs."

The Democratic Party voiced criticism against Musk's opposition to the billionaire tax.

Ron Wyden, a Democratic U.S. Senator and chairman of the Senate Finance Committee, who is promoting the billionaire tax bill, indirectly criticized Musk, saying, "Cunning people are trying to find ways not to pay taxes."

White House Press Secretary Jen Psaki also rebutted Musk's criticism, stating, "We believe the upper class can spend more money on historic investments to improve the American workforce and economy."