This article has hit my feed several times recently, and the author is either deliberately being deceptive, or she is just a moron. The headline reads: “I Asked ChatGPT What Would Happen If Elon Musk Paid Taxes at the Same Rate as the Middle Class” The claim is made in the article that Musk only pays a tax rate of about 3 percent, because his net worth increased so much.
The article claims that Musk can dodge taxes by using the value of his assets as collateral to take out a loan, which isn’t taxed. They are demanding that we tax people on the unrealized gains of their assets, because rich people something something.
The author is comparing apples to Volkswagens. The middle class, for the most part, pays taxes on income. It’s right there in the name: Income Tax. In the article, you are talking about taxing the rich on their wealth. It’s two entirely different concepts. If the two were equal, the middle class would be paying taxes on the value of their house, not on what they make.
As an example, let’s say that an average guy and his wife are making the US median income of $80k. They have two kids, take the standard deduction, and are thus paying $9400 in income tax, plus Social Security, Medicare and other payroll taxes totaling $11,752. That makes this family’s effective tax rate 14.69%. However, his house is worth $40,000 more than it was last year. That $40k is an unrealized gain, and this lowers his effective tax rate to 9.7%.
Now look at Elon’s taxes. They are screaming that his wealth increased by $86 billion in 2021, but he “only” paid $8.6 billion in taxes. They don’t say what he actually made, just what he is worth. It just isn’t a proper comparison.
My opinion here is that the powers that be desperately want the ability to tax wealth. Currently, this isn’t permitted because the 16th Amendment only permits the taxing of income, not wealth. Once they get the power to tax what you own, and not just what you make, there is no limit to what all of us can be taxed on.
- Your retirement account? 2% annual tax
- Your house? 4% annual tax
- You have a collectable car? taxed at 5% of its gain
The beauty of this, is that even if your unrealized gains are adjusted for inflation, the official rate of inflation is lower than the actual rate. So if they let you deduct 2% of your unrealized gains as being inflation, but the actual rate of inflation is 5%, you will pay taxes on that extra 3%.
This will make all of us poor in no time.
5 Comments
Michael · August 2, 2025 at 7:05 am
But, But, But IF you can “PRINT” dollars with a mere stroke of a computer WHY do you have to Tax Me at all?
Sarc in case you thought I was serious.
Printing money creates more dollars chasing the same apple (or whatever). Inflation via the debasement of a nation’s money is older than Rome although the ever-shrinking silver in the Roman Denaris as well as foolish wars all over did kill off Rome.
The power to tax is the power to CONTROL and Destroy. Gov.com likes something? Less or no taxes, Gov.com hates something but cannot directly ban it then tax it to death.
Poor people are easy to control.
I fear that the death of physical cash for E-Dollars, Stablecoin linked to the US Dollar, and such are electronic chains where there is NO Finacial Privacy.
It’s going to get worse sooner than later friends with the ever growing debt bombs and bond nightmares going on.
it's just Boris · August 2, 2025 at 7:36 am
“But, But, But IF you can “PRINT” dollars with a mere stroke of a computer WHY do you have to Tax Me at all?”
That is, in fact, an excellent question to ask anyone spouting off about “Modern Monetary Theory” and how great it is.
Don in Oregon · August 2, 2025 at 9:33 am
Also … how many living wage jobs do Elon’s businesses provide? How much do Elon’s businesses pay in property taxes, employment taxes, etc?
Exile1981 · August 2, 2025 at 10:05 am
Canada is going to have an annual tax on unrealized gains shortly. We already have it when you sell your house but now we’ll have it annually to “fight the deficit”. It will destroy the middle class, which is the real purpose.
Honk Honk · August 2, 2025 at 10:08 am
Chat GPT? The magnificent cloaca.
The logo reminds me of that.
AI be like all smart n’ stuff.
GIGO