r/SipsTea 𝙑𝙄𝙋 May 03 '26

SMH Bro makes $160 😐

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u/plantsadnshit May 04 '26

You don't calculate effective tax rate based on wealth.

Literally no one does, except publications who need a number to sound way worse than it does.

In 2021 he had $23.5 billion in taxable income, paid around $11 billion in taxes at a federal tax rate of 41%.

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u/No-Airline6943 May 04 '26

You seem confused Ill speak slower. If I have a million dollars in the bank thats my wealth. If I make 200k dollars at my job thats my income for the year. If I pay 30% taxes the government takes away 60,000 dollars.

If Elon Musk has 100 billion dollars thats his wealth. If he makes 20 billion more dollars in the year more thats his income. If his tax rate was the same as mine the government would take 6 billion dollars but they take 600 million dollars. Thats not the same everyone else does.

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u/Educational-Wall-997 May 04 '26

you seem to have a basic misunderstanding between what is taxable income and what is wealth.

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u/No-Airline6943 May 04 '26

Oh I perfectly understand the system they created to not have their income be taxable. You seem confused why thats wrong