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…
Many, many billionaires live, have lived, and thrive in CA - probably more than any place in the world. In fact, I'd guess that more billionaires have made their fortunes in CA than any other place. The grievance rhetoric has gone too far (and had awhile ago) when it's used by billionaires. There is also strong reactionary political rhetoric here, the premise that taxes on wealthy people are nearly criminal theft, an…
Elon Musk moves to Texas
431–440 of 1001 posts
Re: Elon Musk moves to Texas
#432Pretty interesting to see this move makes people so salty. There does seem to be a trend of people fleeing California, I dont know enough about the situation out there to comment on whether or not its valid. I suspect something must be going on for several high profile folks moving out. And before you bash Texas, its not perfect. But its pretty diverse, and it seems that folks with opposing viewpoints can still coexi…
I know plenty of diverse liberals (the conservatives already fled) who are moving outside CA due to tax reasons and housing reasons. These are not rich people but a range of professionals in a handful of salary brackets.
So it's not just Elon. It's those who have the opportunity to do so where it does not impact their lifestyle significantly.
Re: Elon Musk moves to Texas
#433Earlier quoted context omitted.
My birth certificate says "Texas" across the top and people have been "fleeing California" to Texas for as long as I've been alive. There's nothing special about Musk; he just happens to be high-profile about it and managed to extract more from California before decamping to a "cheap" state than several of those who came before him. I disagree with your assessment that Texas has wide acceptance for opposing viewpoint…
I've lived in Austin 25 years and have long said "The price we pay for living in such a great city is we have to be surrounded by the rest of Texas."
Many in San Diego say something similar.
Re: Elon Musk moves to Texas
#434Elon doing things like this makes his brand more appealing to conservatives, and thus makes Tesla’s products more appealing to conservatives.
This is important, because for electric trucks to succeed, they have to be appealing to people who are willing to modify their truck engines to burn more gas, for no reason other than to “own the libs.”
By culturally ingratiating himself with conservatives, he’s helping create a bigger market for electric cars than would otherwise exist. I find it obnoxious, but it’s not worth caring about in the context of the dire need to electrify America’s vehicle fleet in a hurry.
Re: Elon Musk moves to Texas
#435Earlier quoted context omitted.
We will be moving out of CA in the coming months. We are lifelong residents. We are leaving due to cost of living and especially quality of life for our children.
This doesn't make any sense. Why is the quality of life poorer in California compared to Texas when California has: Better schools across all grades, better universities and better weather? Perhaps there are other factors? Do demographics play a role perchance? From Wikipedia: 1) According to 2018 US Census Bureau estimates, California's population was 59.5% White (36.6% Non-Hispanic White), 14.7% Asian, 13.8% Some O…
You might be a racist. The commenter said exactly why they are going to move. Replying to suggest that demographics or a racial preference is the actual secret reason is in poor taste.
Re: Elon Musk moves to Texas
#436I wish public rhetoric was less combative/twitter-like and more collaborative. Elon has built incredible companies doing incredible things. He's also made some stupid comments re: covid. SV political hostility towards technology companies and employees is frustrating. I wish the government was more aligned with helping these companies grow and things weren't treated as if they were so zero-sum (when they're not). I a…
"Elon has built incredible companies doing incredible things. He's also made some stupid comments re: covid." I hope you see theres an issue with statements like this. Its hard for someone to be so competent in terms of founding multiple billion+ companies, and then be completely wrong on covid.
Being a genius in something doesn't make you a genius on everything.
https://www.cnn.com/2019/01/13/health/james-watson-honors-st...
Re: Elon Musk moves to Texas
#437Criticizes 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...
"These laws make it illegal to buy a car from Tesla in person, at a Tesla Gallery. Thus, all Texas orders are taken via the internet or over the phone. Texas residents can still easily buy a car from Tesla, but the purchase is handled as an out-of-state transaction and must be completed before the vehicle ships to Texas." Tesla is not your regular dealership. Car purchases are made online anyways.
That's just saying they have a technological workaround to the policy of banning in-person sales at Tesla galleries, not a refutation of the reality of the laws themselves. If Tesla started eating heavily into Texas car dealerships' sales, don't be surprised if the dealers' associations show up at the state capitol demanding more teeth in the law.
Re: Elon Musk moves to Texas
#438Earlier quoted context omitted.
Many, many billionaires live, have lived, and thrive in CA - probably more than any place in the world. In fact, I'd guess that more billionaires have made their fortunes in CA than any other place. The grievance rhetoric has gone too far (and had awhile ago) when it's used by billionaires. There is also strong reactionary political rhetoric here, the premise that taxes on wealthy people are nearly criminal theft, an…
I am speaking for myself here, but the way I see it, the issue is more the way in which taxation is exercised than the taxation itself. If I was in Elon's seat, I personally wouldn't mind paying 20 or 30% of my income in taxes. But vesting shares should not qualify as income. What should qualify as income is me selling those shares. In other words, If I am awarded 1B$ in shares that I have no plan on selling short te…
> But vesting shares should not qualify as income. What should qualify as income is me selling those shares
I believe that the logic here is the same reason AMT was introduced in the past.
I vest $1M in shares. I get a loan against those shares for 500k. I now have 500k in cash, that I have paid no taxes on. Someone will definitely give me that loan because _worst case_ I have to sell the underlying shares, pay tax, and still pay back the loan. When that loan is due? Refinance against the same shares that I still haven't sold.
If you have a lot of assets, you can always get a loan against those assets. You can kick the can down the road long enough to, effectively, never pay taxes. Or you just kick it long enough for some sort of "tax holiday".
Real estate lets you do this with refinances and 1031 exchanges all the way until you die (at which point the cost basis resets, and your heirs will most likely pay no tax).
Re: Elon Musk moves to Texas
#439Earlier quoted context omitted.
> 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. You mean the budget that included tax abatement and subsidies for his factories and the people who buy his cars?
You mean abatements & subsidies required to push "clean" vehicle policies that are among the most aggressive in the world? Without Tesla & CA's policies, auto electrification would be at least a decade behind what it is today... Being at the forefront of environmental policy has real costs.
Perhaps the private beneficiaries of those subsidies should bear some responsibility for covering the costs?
Re: Elon Musk moves to Texas
#440Earlier quoted context omitted.
This doesn't make any sense. Why is the quality of life poorer in California compared to Texas when California has: Better schools across all grades, better universities and better weather? Perhaps there are other factors? Do demographics play a role perchance? From Wikipedia: 1) According to 2018 US Census Bureau estimates, California's population was 59.5% White (36.6% Non-Hispanic White), 14.7% Asian, 13.8% Some O…
I live in San Francisco. I literally do not see black people. I largely do not see brown people outside of the service industry (i.e. they are "kept back in the kitchen"). I will largely interact with only white people and asian people on any given day. Where I will be moving to in TX has more diversity than where I live in San Francisco, which is something I am happy about. My children will be seeing more black & br…
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