Bernie Sanders wants wealth tax, Elon Musk says his tax bill once broke IRS computers
Elon Musk says he pays so much tax that his tax bill once overwhelmed the American system. His comments come as US Senator Bernie Sanders has called for a wealth tax on billionaires, linking them to rising inequality due to AI-driven job losses.
According to Bloomberg’s Billionaires Index, Elon Musk is currently the richest person in the world, with a net worth of approximately $619 billion. He says that with that level of wealth, he already pays a huge amount in taxes, so much so that it once overwhelmed the American tax system. In a recent post on
Musk’s comments come just a day after US Senator Bernie Sanders sharply criticized billionaires and tech leaders, accusing them of greed and prioritizing profits over people. Sanders warned that as artificial intelligence and automation accelerate, working people face increasing insecurity while the richest Americans continue to build greater wealth.
In a recent post on X, Sanders said the US is living through a “time of unprecedented and rising wealth and income inequality” and called for a national wealth tax on billionaires. He accused the billionaire class of “greed, arrogance and irresponsibility”. According to Sanders, inequality has reached extreme levels, with millions of Americans struggling to afford housing, health care and food, while wealth is concentrated at the top.
Sanders has also called for higher taxes on the extremely wealthy as he pushes for the rapid rise of AI and automation. He also questioned predictions from tech leaders, including Elon Musk, that machines could replace large numbers of human jobs. Sanders argues that if machines start doing the work then why should people pay taxes. Instead, the machines must pay. He also warns that rapid automation will leave millions of people with little or no income, while corporations will continue to save money by replacing workers with machines that do not require wages or benefits.
While many support Sanders’ call for taxes on wealth and property, there has also been criticism of his stance. Proponents argue that billionaires already contribute a disproportionate share of income taxes and that further taxation could discourage investment and innovation. Many also point out that much of the wealth of billionaires is tied up in assets such as stocks and company ownership, which are taxed separately from regular salaries. However, Sanders says the wealth tax would ensure that billionaires contribute more directly to public services and support workers affected by economic disruption due to automation.
Musk himself has repeatedly warned that heavy taxation risks stifling success and slowing technological progress. He has also argued that technological progress can help solve major economic challenges. Speaking on the Nikhil Kamath podcast, Musk had earlier said that AI and robotics on a large scale will be key in addressing America’s growing debt problem. “As long as civilization continues to advance, we will have AI and robotics on a very large scale,” he said. “I think this is the only thing that will solve the American debt crisis.”
