The Internal Revenue Service (IRS) is investigating leaked information that Elon Musk and other billionaires have underpaid federal taxes, agency head Charles Rettig said Tuesday, June 8, at a Senate hearing.
Earlier in the day, ProPublica, an independent investigative journalism organization, citing IRS data that came into its possession, reported that billionaires in the United States paid virtually no taxes, despite their growing wealth. In particular, we are talking about Jeff Bezos, Ilone Musk and Warren Buffett.
According to the publication, the wealth of the 25 wealthiest Americans grew by $401 billion from 2014 to 2018. But collectively, they paid $13.6 billion in federal income taxes during that period, a combined tax rate of 3.4%. Meanwhile, on average, households in the U.S. who earned about $70,000 a year paid the federal government at a 14 percent rate.
It is noted that Tesla CEO Ilon Musk managed to avoid paying taxes in 2018, while Amazon founder Jeff Bezos failed to pay federal income taxes in 2007 and 2011.