Musk warns about government spending and highlights Bitcoin benefits
Elon Musk warns about rising government debt and its dangers. And in that light, he sees the benefits of Bitcoin.
Tesla and Spacex CEO Elon Musk has talked this weekend about rising government debt in the US in particular, government spending and the proposal to tax unrealized capital gains has highlighted the benefits of cryptocurrencies, especially Bitcoin.
Elon Musk warns: ‘Spending is the real problem’
Elon Musk posted last week various tweets about US debt and spending. He also warned against the proposal to tax unrealized capital gains targeting billionaires. So, for example, if people make a profit on shares, but have not cashed in yet, then tax is levied on it.
Musk believes that if the proposal went through, the government wouldn’t stop it at billionaires. “Eventually they run out of other people’s money and then they come and get you,” he tweeted early last week.
Not much to get
He ruled on a Washington Post article. It states that he “would pay as much as $50 billion in taxes in the first five years. While Bezos could pay as much as $44 billion,” the Tesla CEO tweeted to his 61.7 million followers: “By their own estimates, this tax only covers ~10% of the $3.5 trillion spending account. Where does the other 90% come from? The answer is you.”
The Tesla boss went on to explain that the US national debt is currently about $28.9 trillion or $229K per taxpayer, claiming that even if all billionaires are taxed at 100%, it would only create a small dent in the debt figure. “The rest has to come from the general public,” he emphasized. “This is basic math.”
Meanwhile, many people agreed with Musk on the issue of government spending and rising national debt, stating that this is why they put their money in crypto. Coinbase CEO Brian Armstrong agreed with Musk, stating, “Exactly – it’s gotten completely out of hand. If they continue to print to pay off the debt and cover the deficit, it will accelerate the move to crypto.”
