Elon Musk, the CEO of Tesla and SpaceX, must think he’s the luckiest man alive. Politicians in Washington, especially on the Left, constantly inveigh about how he and other billionaires need to pay their “fair share” in taxes. However, the recently passed infrastructure bill suggests some of those same politicians want Musk to be even richer than he already is. His net worth is more than $300 billion.
One of the things the infrastructure bill proposes is to build recharging stations to the tune of $7.5 billion. Musk happens to own Tesla, the most prolific manufacturer of electric vehicles on the planet. The current dearth of electric charging stations is one thing that keeps several people from going electric. However, if drivers know they can charge their EVs anywhere they go, they will be more likely to buy one. Tesla would be more than happy to sell at a reasonable price.
Meanwhile, the bill allocates $65 billion for more broadband access, especially in rural areas. Musk is building a satellite broadband constellation called Starlink. Customers purchase a base station that includes a satellite dish that connects with the system. Starlink already provides broadband access to many places that have lacked internet service. Musk will doubtless be pleased to receive more government funding for his enterprise, which promises to pay for his lifelong dream of building a human settlement on Mars.
Musk has taken the slings and arrows of politicians who find his great wealth to be offensive. In response to those who demand he pay more in taxes, Musk explained on Twitter, “Note, I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock.”
Then, Musk threw down a challenge: “Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.” Presumably, he would pay the capital gains tax on that immense stock sale.
Sen. Ron Wyden, an Oregon Democrat, was not impressed. He reiterated his perceived need for a billionaires’ tax, which would sock people who have made at least $100 million in income over three years or have at least $1 billion in assets. The tax would be imposed on gains in investments such as stock, whether it’s been sold or not. Wyden’s proposal has thus far not been included in President Joe Biden’s Build Back Better bill. Musk has criticized the proposal on the theory that it would eventually be expanded to people with assets of less than $1 billion.
If Musk were to sell 10% of his Tesla stock, he would have a considerable amount of money to invest in other enterprises. What those investments could be is a matter of speculation.
The Musk situation in regard to the infrastructure bill reveals a curious paradox in U.S. politics. Much as politicians such as Wyden and Sen. Bernie Sanders like to inveigh against billionaires, they cannot help but foster policies that benefit them.
It’s not just the fabulously wealthy folks like Musk who will benefit from the infrastructure bill. Someone has to build and repair all those roads and bridges that we are assured are crumbling if we don’t do something about them. Construction companies will make a killing from all of those government contracts. In return, providing that not too much money is sucked up into the maw of waste, fraud, and abuse, the United States will get a revitalized transportation and communications infrastructure that will benefit all.
Perhaps the politicians who like to regard billionaires such as Elon Musk as whipping boys might, from time to time, offer a little praise to the captains of industry who make the world work.
Mark Whittington, who frequently writes about science, space, and politics, has published a political study of space exploration titled Why is It So Hard to Go Back to the Moon? as well as The Moon, Mars and Beyond and most recently, Why is America Going Back to the Moon? He blogs at Curmudgeons Corner.
