Progressive politicians are increasing their criticism of Elon Musk ahead of his company SpaceX's planned initial public offering, which is expected to make him the world's first trillionaire.
SpaceX is expected to start selling shares to the public as soon as June 12. Musk, currently the wealthiest person globally, has faced criticism from Democrats for his role in the Trump administration. His projected rise to a trillion-dollar net worth has become a focal point for politicians aiming to highlight income inequality before the midterm elections.
A trillionaire is defined as someone with $1,000,000,000,000 or more. The term has entered political discourse as a progression from "millionaires and billionaires."
Statements from Politicians
- Representative Pramila Jayapal (D-WA) stated on X: "Nobody should be a trillionaire. Tax the damn rich."
- Senator Bernie Sanders (I-VT) said at a rally in Maine that Musk is "going to get even richer" and called such wealth "insanity."
- State Senator Mallory McMorrow (D-MI), a U.S. Senate candidate, said Musk would not be successful without billions in government contracts and subsidies. She noted that $1 trillion could fund the state of Michigan's budget for over 12 years.
- Randi Weingarten, president of the American Federation of Teachers, denounced billionaires and trillionaires at a rally.
Musk's Defense
Musk did not respond to requests for comment. He has previously stated that his wealth is intended to fund a human settlement on Mars. According to SpaceX's investor prospectus, Musk will not receive stock bonuses until the company has a city on Mars with 1 million people. In 2016, he said: "I really don't have any other motivation for personally accumulating assets except to be able to make the biggest contribution I can to making life multi-planetary."
Musk has also defended his tax payments, stating he paid over $11 billion in taxes in 2021. According to ProPublica, he paid no federal income taxes in 2018. Federal taxes apply to income, not net worth.
Public Perception and Wealth Gap
A March YouGov poll found that 46% of respondents had unfavorable views of Musk, while 30% had favorable views.
An Economist/YouGov poll in January indicated that 80% of American adults consider the wealth gap a significant problem, and 59% believe the federal government should try to reduce it.
Wealth Tax Proposals
In California, voters may see a ballot referendum on imposing a 5% tax on net worths over $1 billion. Musk lives in Texas and would not be subject to this tax, but his potential trillionaire status could influence the debate. Quiana Hall, a union steward supporting the tax, said: "There's a lot to give in that trillion."
Background on Trillionaires
No individual has yet reached a trillion-dollar net worth. Historically, John D. Rockefeller's wealth in 1915 was equivalent to about one-thirtieth of U.S. GDP, similar to a trillionaire today. A 2013 study found that many people struggle to comprehend the scale of numbers like million, billion, and trillion.