The final passage of the US Infrastructure Bill, containing several provisions regarding cryptocurrency taxes, led the industry to rally against the US Congress. However, another proposal that is catching the attention of the house is the âbillionaire taxâ.
It would affect around 700 of the richest Americans by taxing unrealized capital gains on unsold assets. One of the richest men in the world, Elon Musk is one of the biggest losers.
Earlier today, the billionaire polled his millions of followers on whether he should sell 10% of the shares in his electric car company, Tesla. These would be worth more than $ 21 billion, according to Reuters.
There has been a lot of talk lately about unrealized gains as a means of tax evasion, so I am proposing to sell 10% of my Tesla shares.
Do you support this?
– Elon Musk (@elonmusk) November 6, 2021
He further claimed that he “would comply with the results of this poll” regardless of the outcome. He also said,
âI don’t take any cash or bonus paychecks from anywhere. I only have stocks, so the only way I can personally pay taxes is to sell stocks.
While not illegal, many billionaires, including Musk, manage to sidestep federal taxes by restructuring their wages to avoid income and, instead, securing their equity holdings to take out loans to fund their way of life. life, according to a report by ProPublica. So it’s no wonder that the CEO was critical of the proposal, claiming that it would impede the delivery of “humanity to Mars.”
At the time of going to press, 56.7% of voters had voted in favor of the sale, while 43.3% were not in favor of the idea. While many have raised concerns about a possible drop in Tesla’s stock price, others have criticized Musk for basing such a significant decision on easily programmable polls.
However, given the difficult relationship Musk and his companies have shared with Bitcoin, it was no surprise that many in the community began to speculate that capital could go into cryptocurrency.
Financial analyst Kevin Paffrath Noted that a huge buy of BTC could take place as the withdrawal would have to be converted into assets due to “inflation fears”.
Additionally, with around $ 1.5 billion in BTC on Tesla’s balance sheets and undisclosed personal holdings, Bitcoin is already one of Musk’s biggest investments, Paffrath argued. He also added that since Musk has already sold most of his real estate, he is unlikely to invest the money in real estate.
He concluded by predicting that “$ 12 billion to $ 13 billion would be invested in crypto.”
MicroStrategy’s Bitcoin maxi, Michael Saylor, also didn’t miss the opportunity to pump his favorite cryptocurrency, urging Musk to buy “$ 25 billion in BTC” for diversification and inflation protection.
If the goal is diversification, another strategy to consider is to convert the $ TSLA balance sheet to one #Bitcoin Standard and buying for $ 25 billion $ BTC. This would provide diversification, inflation protection and more benefits for all investors in a tax efficient manner.
– Michael Saylorâ¡ï¸ (@saylor) November 6, 2021
MicroStrategy is currently the largest holder of Bitcoin and continues to acquire more tokens frequently. While MicroStrategy enjoyed a successful third quarter thanks to its BTC holdings, payments giant Square saw lower Bitcoin revenue growth due to price volatility. The company also noted in its third quarter report that fluctuations are expected to continue going forward.