Elon Musk Pays Negligible Taxes — Here is Why!
Why do the wealthy pay negligible taxes?
Tax seasons are a pain for everyone. The higher your earned Income is, the higher you are in the tax bracket. Have you ever wondered how the wealthy axe the taxes?
I recently read a report where Elon Musk pays almost negligible tax.
Now, read that again!
Elon Musk pays almost negligible tax!
He is one of the World’s wealthiest people. However, his income tax rates are almost nil to negligible. It is not tax evasion, just that financially literate people can find ways to do so. Please take some time to read the link shared above to understand the mechanisms/financial instruments used to minimize the tax outgo.
Before you read further — I suggest you read my previous blog, where I explained earned Income and other income types.
If you feel getting to know each financial instrument is complex ( Yes, I am overwhelmed, too!), here is the core message I learned by studying the wealthy.
The higher your earned Income is, the higher you are in the tax bracket.
The more portfolio and passive Income you have, the lower the taxes.
Where you Sweat the most → Earned Income → has the…