41–50 of 1001 posts
California is actively looking for ways to extract more money from Elon. It likely posed an appreciable risk to his business ventures that CA at some point will try to tax unrecognized capital gains, which would require him to liquidate shares to pay the tax. Basically akin to a hostile government takeover. If CA were to aggressively pursue such a policy, they would likely go after anyone they perceived as fleeing ju…
People like Musk leverage their paper wealth into real (risky) loans and the like to support their business ventures (and personal lives)--part of the "socialize risk, privatize profits" model of pseudo-capitalism they practice.
A thoughtless approach to taxing unrecognized gains is not a good idea, but I certainly understand why it might be considered, at least for some minimum threshold. There's already something like this in the way some stock options are handled: individuals are taxed at exercise on the difference between the FMV and the strike price, whether they sell or not. I don't see why a similar principal couldn't be made to work with actual equities, at least for some high-value accounts/holdings.
Criticizes California for excessive regulation, then moves to a state where it's illegal for Tesla to sell its cars. https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes#T...
When you mention excessive regulations you might want to look at all regulations, not just cherry pick one of them to make a point.
California is actively looking for ways to extract more money from Elon. It likely posed an appreciable risk to his business ventures that CA at some point will try to tax unrecognized capital gains, which would require him to liquidate shares to pay the tax. Basically akin to a hostile government takeover. If CA were to aggressively pursue such a policy, they would likely go after anyone they perceived as fleeing ju…
The same has been happening in New Jersey with its insane taxes that don't really go to pay for services anymore and have diverted from transportation & infrastructure projects for decades now to bail out their severely underfunded pension funds...where the pensioners have almost entirely moved out of New Jersey to avoid the same taxes.
There's a point where what you get out is not worth what you put in. I don't blame Musk at all for doing what's best for himself, his company and (probably) his employees.
Isn't the actual listed location of residence more a formality for a billionaire like Musk? I presume he'll still rent residences in LA and the Bay Area considering he'll be back and forth for business related to Tesla and SpaceX. This seems like he's renting a place in Texas and making a big deal out of 'moving there' to make a point about California's regulatory environment.
I have no direct experience in this, but an acquaintance of ours whose startup exited successfully is similarly leaving CA for tax reasons. My light understanding is that CA has some pretty tight rules around how often you can work in CA before you automatically become a resident for the purposes of taxes. If they find out that you’ve worked in CA too much I presume they’ll try and tax your yearly income.
Criticizes California for excessive regulation, then moves to a state where it's illegal for Tesla to sell its cars. https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes#T...
Earlier quoted context omitted.
I doubt Tesla really cares all that much. The link says Texans can easily buy Teslas from Tesla, but they have to complete the paperwork before the car ships to Texas. It seems like a very minor inconvenience compared to dealing with the various California regulations and bureaucrats.
I wonder how that changes when the vehicles (like cybertruck) are manufactured in Austin, TX.
They are major contributors to state legislative and congressional races, support local charities, etc and employ lots of well-paid local staff.
As electric becomes more common, that will tip as manufacturers buyout dealerships. But that will take awhile and bigger dealers are gobbling up little dealers in the meantime. IMO, the dealers will be less of a big deal as they consolidate into regional players. Dealers were a barrier to Tesla selling cars at all -- they have traction now. Plus, the Uber-consolidated dealerships will continue to consolidate operations and shed overhead costs in the process) Even Coca Cola still has 60-70 independent bottler franchises.
Isn't the actual listed location of residence more a formality for a billionaire like Musk? I presume he'll still rent residences in LA and the Bay Area considering he'll be back and forth for business related to Tesla and SpaceX. This seems like he's renting a place in Texas and making a big deal out of 'moving there' to make a point about California's regulatory environment.
i'd doubt he's renting...
California is actively looking for ways to extract more money from Elon. It likely posed an appreciable risk to his business ventures that CA at some point will try to tax unrecognized capital gains, which would require him to liquidate shares to pay the tax. Basically akin to a hostile government takeover. If CA were to aggressively pursue such a policy, they would likely go after anyone they perceived as fleeing ju…
It likely posed an appreciable risk to his business ventures that CA at some point will try to tax unrecognized capital gains, People like Musk leverage their paper wealth into real (risky) loans and the like to support their business ventures (and personal lives)--part of the "socialize risk, privatize profits" model of pseudo-capitalism they practice. A thoughtless approach to taxing unrecognized gains is not a goo…
California is actively looking for ways to extract more money from Elon. It likely posed an appreciable risk to his business ventures that CA at some point will try to tax unrecognized capital gains, which would require him to liquidate shares to pay the tax. Basically akin to a hostile government takeover. If CA were to aggressively pursue such a policy, they would likely go after anyone they perceived as fleeing ju…
Or, framed differently, California is looking for deep pockets to bail out their failing budget rather than adjust their policy to match what they can afford. The same has been happening in New Jersey with its insane taxes that don't really go to pay for services anymore and have diverted from transportation & infrastructure projects for decades now to bail out their severely underfunded pension funds...where the pen…