political-us

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https://www.washingtonpost.com/business/2024/10/26/elon-musk-immigration-status/

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Class war poster spotted in Liverpool, UK

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Elon Musk and former President Donald Trump have proposed several initiatives that could impact the wealth of lower and middle-class Americans:

Implementation of Tariffs: Trump's administration has imposed tariffs on various imported goods, aiming to protect domestic industries. However, these tariffs have led to increased prices for everyday items, disproportionately affecting lower and middle-income consumers. For instance, tariffs on washing machines resulted in higher costs for American shoppers, outweighing the economic benefits for local workers.

WSJ.COM

Simplification of the Tax Code: Musk and Trump have considered overhauling the U.S. tax system, potentially moving towards a flat tax. While this could simplify filing, it might also eliminate deductions that benefit low and middle-income families, potentially increasing their tax burdens.

ECONOMICTIMES.INDIATIMES.COM

Reduction of Federal Spending: Appointed by Trump to lead the Department of Government Efficiency (DOGE), Musk aims to cut federal spending by up to $2 trillion. Proposed measures include reducing the federal workforce and eliminating certain government programs. Such cuts could lead to job losses and reduced services that many lower and middle-class individuals rely on.

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Dismantling of Foreign Aid Programs: Musk and the Department of Government Efficiency have been involved in dismantling USAID, affecting numerous health and development programs worldwide. Critics argue that while reform is necessary, abrupt shutdowns can have harmful impacts on aid-dependent regions and may also affect global stability, indirectly impacting the U.S. economy and its citizens.

NEWYORKER.COM

These initiatives, while aimed at economic efficiency and protectionism, carry potential risks for lower and middle-class Americans, including higher consumer prices, increased tax burdens, job losses, and reduced access to essential services.

Elimination of the Consumer Financial Protection Bureau (CFPB): Elon Musk has advocated for dismantling the CFPB, an agency established to protect consumers from unfair financial practices. Abolishing the CFPB could expose consumers to predatory lending and financial scams, disproportionately affecting lower and middle-income individuals.

DEMOCRATS-FINANCIALSERVICES.HOUSE.GOV

Proposed Cuts to Social Programs: The Department of Government Efficiency (DOGE), led by Musk, has proposed significant reductions in federal spending, including cuts to social programs like Medicaid and SNAP. These programs provide essential support to low-income families, and reducing their funding could lead to decreased access to healthcare and nutrition assistance.

FORBES.COM

Potential Impact of Immigration Policies: Trump's stringent immigration policies, including mass deportations, could lead to labor shortages in industries such as agriculture and construction, potentially driving up costs for goods and services. These increased costs may be passed on to consumers, affecting lower and middle-class households.

INDEPENDENT.CO.UK

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Wealth inequality in the US

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Fred Greaves / AFP via Getty Images

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Medicaid—the country’s largest health insurance program, covering 70 million-plus people—may face cuts from congressional Republicans. Seeking economies to offset border security costs and continuation of President Trump’s 2017 tax cuts, Medicaid, the state-federal program for the poor, faces potential cuts of up to $2.3 trillion over a decade.

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Can't Have Nice Things

The Ketamine King Musk has shutdown the IRS's Free Tax Filing system.

Of all the things a government could off, a way to Freely calculate and file your taxes seems like a good one. But the richest man in the world thinks we shouldn't have that.

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U.S. District Judge Carl Nichols, a Trump appointee, issued a limited temporary restraining order blocking the government from putting USAID employees on leave and reinstating 500 staffers who had already been placed on administrative leave.

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Kanye West is officially collaborating with Sean Diddy Combs.

Diddy was arrested on September 16, 2024, and is currently incarcerated at the Metropolitan Detention Center in Brooklyn, New York. He faces federal charges including racketeering, sex trafficking, and transportation for prostitution. Prosecutors allege that Combs operated a criminal enterprise involving "Freak Off" parties, where women were coerced into sexual activities with commercial sex workers. Combs has pleaded not guilty to all charges.

In the indictment, prosecutors claim that Combs led a criminal enterprise whose members and associates engaged in sex trafficking, forced labor, kidnapping, arson, bribery, and obstruction of justice.

Diddy's trial is scheduled for May 5, 2025. If convicted, he could face decades in prison.

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So the lemkin institute posted this

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While the exact percentage may vary slightly by study, the top 10% of U.S. households are generally understood to own about 70% of the nation’s wealth.

That mean’s 90% of us are dividing up only 30% of the wealth in America.

30 years ago:

According to data from the IRS, in 1995, the top 10% of wealth holders in the United States owned approximately 27.4% of the total personal wealth, meaning they held a significant portion of the nation's wealth.

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“Our service members go wherever they need to in order to bravely serve our country — and because President Trump’s extremist Supreme Court overturned Roe, where they and their families are stationed quite literally dictates their access to critical reproductive care,”

“Now, Trump is turning his back on our servicemembers — and our servicewomen in particular — to score political points. It’s shameful, and will only make our troops and our nation less safe.”

- US Senator Elizabeth Warren

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Immigration vs Billionaires

The U.S. loses a significant amount in taxes due to undocumented immigrants, but it’s also important to note that undocumented immigrants still contribute to the economy in various ways, including through taxes.

1. Income Taxes: Many undocumented immigrants pay income taxes, often through false or borrowed Social Security numbers. According to estimates from the Institute on Taxation and Economic Policy (ITEP), undocumented immigrants contribute approximately $11.7 billion annually in state and federal income taxes.

2. Sales and Property Taxes: In addition to income taxes, undocumented immigrants contribute to state and local revenues through sales taxes when they purchase goods and services. They also pay property taxes indirectly through rent.

3. Overall Contribution: The total tax contribution from undocumented immigrants is estimated to be in the tens of billions, with studies showing that while there is a loss in terms of uncollected taxes from their wages (due to their undocumented status), they also contribute significantly to the U.S. economy in ways that offset these losses.

Overall, it’s difficult to quantify the exact "loss" in taxes due to undocumented immigrants, as the contributions through income, sales, and property taxes are considerable, even if they are not always fully captured.

The estimated cost of lost tax revenue due to undocumented immigrants is typically in the $12 to $13 billion range annually for federal income taxes, while their contributions through state and local taxes are significant, often approaching or exceeding $11 billion annually.

In 2021, Elon Musk ALONE paid approximately $11 billion in federal income taxes. This figure was reported by Forbes and other outlets. However, it's important to note that this is based on his 2021 income and does not include all of his wealth, as much of Musk’s wealth is tied to Tesla stock and other assets, which are not taxed until sold.

Despite his $11 billion tax payment, Musk’s effective tax rate as a percentage of his wealth was significantly lower. According to an investigation by ProPublica in 2021, Musk paid an effective federal income tax rate of around 3.27% on the $13.9 billion increase in his wealth from 2014 to 2018. This was much lower than the average rate for middle-income earners due to the fact that most of his wealth comes from unrealized capital gains, which are not taxed until the assets are sold.

Key Points:

The $13.9 billion refers to how much Musk’s wealth grew between 2014 and 2018 due to Tesla stock increasing in value. This increase is called unrealized capital gains (because he hasn’t sold the stock, so it’s not taxed yet).

Capital gains are the profits from selling things like stock. When Musk sells his stock, he pays taxes on the profit (capital gains).

Musk's effective tax rate was about 3.27% during that period because he paid taxes on income he actually earned (like when he sold stock), but didn’t pay taxes on the unrealized gains (the increase in the value of his unsold stock). This is why the percentage of tax he paid on his overall wealth is very low compared to regular workers who pay taxes on all their income.

In short, Musk’s $13.9 billion is how much his wealth grew from 2014 to 2018, and he paid very little tax on that growth because he hadn’t sold most of his stock during that time. He only paid taxes on what he sold in later years.