If it weren’t for laws that permit the wealthy to endlessly defer paying taxes by keeping their gains unrealized, there would be no trillionaires,
Elon Musk at his at his departure ceremony from the Department of Government Efficiency, with Donald Trump in the Oval Office, May 30, 2025. (White House Photo by Molly Riley)
By Other Words
The valuation trends up and down, but one thing’s for sure: Elon Musk became the world’s first trillionaire this summer. At the height of the SpaceX IPO, he was briefly worth around $1.45 trillion.
Then SpaceX stock tanked, rallied, then tanked again. But the most important thing about Musk’s wealth isn’t whether it stays above the 13-figure threshold — it’s that 94 percent of it comes from not having to pay taxes on unrealized gains.
That’s right: Musk’s fortune effectively comes from not paying taxes.
It’s no exaggeration to say that trillionaires (Musk likely won’t be the last) are creatures of the tax code. They ought to be called “taxillionaires.” If it weren’t for laws that permit the wealthy to endlessly defer paying taxes by keeping their gains unrealized, there would be no trillionaires — and many fewer billionaires.
Exempt from Taxes
According to Musk’s own account, when he sold his stake in Paypal in 2002, he netted $180 million, invested it all in SpaceX and Tesla, and borrowed to pay his living expenses. To get from $180 million to a trillion today implies annual returns of over 40 percent (returns that would be considered impossible for ordinary investors).
Allowing these returns to compound untaxed supercharges growth.
Musk paid some taxes along the way, when he exercised stock options or sold some Tesla shares, but any taxes he paid are insignificant compared to his wealth. By contrast, for most working Americans earning a good salary, total state and federal taxes are significant — typically around 40 percent.
They can put limited amounts in tax-deferred I.R.A.’s, 401(k) plans, and the like. But most of their savings comes from net paychecks after withholding for federal, state, local, Social Security, unemployment, and Medicare taxes. Musk is effectively exempt from these taxes.
But he doesn’t have to be.
Internal Revenue Service building in Washington, D.C. (Chris Phan, Flickr, CC BY 2.0)
Suppose he were subject to the same taxes on his annual wealth increase that most higher-earning Americans pay on what they make and had to sell some Tesla and SpaceX shares to pay those taxes.
We crunched the numbers based on the latest figures, and found he’d be worth around $47 billion today — rich enough to afford the most lavish lifestyle imaginable, but not a trillionaire, and not richer than the G.D.P. of most countries.
It’s the same story for Jeff Bezos, Warren Buffett, and other multibillionaires.
The vast bulk of their fortunes came from not paying taxes on their wealth as it grew. Without endless tax deferrals, they would have only a tiny fraction of what they own today (although that tiny fraction would still be a huge amount of money). Yet as things stand today, nothing stops them from wielding the power and influence their wealth buys to benefit themselves.
Stalled in Congress
In the 2024 elections, Musk was the largest campaign donor, giving $291 million. That’s chump change for him, but it bought unprecedented power: lucrative contracts, the suspension of investigations of Musk’s businesses, access to government data, and the authority to dismantle government programs — including disruptions to foreign aid which are projected to result in over 14 million people dying from preventable diseases.
It’s a vicious cycle of wealth begetting power which begets more wealth, diverting it from the needy and vulnerable. We’re in the grip of unprecedented power accumulated by private, superrich individuals.
We can check their power by fixing the untaxed wealth problem. We should end the practice of funding billionaires’ and trillionaires’ accumulation of power at public expense by letting them amass yet larger fortunes without paying taxes. We should adopt sensible policies requiring them to pay their fair share, such as the Billionaires Minimum Income Tax Act introduced in Congress in 2023 [with versions later introduced in 2025].
Over the next decade, we will face crisis-level national debt and unmet needs for healthcare and retirement income. That will force us to decide whether to leave the vast pool of billionaire and trillionaire wealth untouched, or tax them like the rest of us to curb their influence and address public needs. The choice is ours.
Bob Lord is a Phoenix-based tax attorney and an associate fellow at the Institute for Policy Studies.
Stephen Land is an author with Other Words.
This article is from Other Words.
The views expressed in this article and may or may not reflect those of Consortium News.
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Wealth is product of human labour, acting upon nature-given materials, that is capable of satisfying needs. We work, they take and pass on. Some of today’s capitalists have many centuries of legalised theft behind them. The richest families in Florence have been at it for the past 600 years. This fact was confirmed recently by two economists doing useful work for a change. Guglielmo Barone and Sauro Mocetti studied the records of Florentine taxpayers in 1427 with those in 2011 and after comparing the family wealth to those with the same surname today, concluded the richest families in Florence six centuries ago remain the same now.
It needs to be mentioned that the majority of U.S. aid is spent on “soft” power initiatives in order to destabilize, overthrow, and break up nations that wish to have sovereignty over their domestic and foreign policies. Multiple countries have either kicked out USAID, NED, NDI ,etc, or required organizations to declare where their funding is coming from, as in Georgia. Only a small minority actually provides need ed food or medicine.
“Some are more equal than others”
So said the Pigs.
I would opt for a 99% billionaire wealth tax. The sooner we defund the billionaires, the sooner we can start working on fixing all of the problems they have caused.
It’s now far worse than Not Paying Taxes!
See the article in Counterpunch August 17, 2026:
Why Elon Musk Should be Boycotted, as Seen From South Africa.
“Chilling to the Bone”!