Everyone knows that Elon Musk has gotten really rich recently. Now, he will pay $11 billion in taxes to the federal government. Does this trickle down to the rest of us? Examples could include: roads, healthcare, social security, wages for government workers and people in the military. Is that correct?
That's a hell of a lot of tax. Usually the uber wealthy hold their wealth in stock, and don't have super high incomes. If he paid that much he must have sold a large amount of stock in a single year.
Yes, according to the article, he sold $27 billion worth of stock.
I just read the article. I didn't know that exercising stock options was taxable income. That's just converting the options into actual shares. Normally stocks is not taxable until you sell it. Since he had to sell stock to cover the tax on the options, he was taxed twice on essentially the same shares.