Tesla CEO Elon Musk, who has an estimated fortune of $140 billion, has moved his corporate headquarters from California to Texas, which means that the three richest men in America – Elon Musk, Jeff Bezos (Amazon CEO) and Bill Gates (co-founder Microsoft) – They live in states that don’t charge income tax.
Musk’s move was expected after rumors spread through his friends and colleagues that the state of Texas called the Lone Star State would become his new home, and in the summer of this year he moved his headquarters to Austin, Texas, after the dispute between Musk. And government officials in California regarding restrictions imposed in the state due to the Corona pandemic, and the dispute reached his filing a lawsuit against Alameda County in May and threatening to move his company out of the state after he was not allowed to open his factory again.
Both Bezos (whose fortune is estimated at $183.3 billion) and Gates (whose fortune is estimated at $118.7 billion) are based in Washington state, the birthplace of their companies, and Washington and Texas are two of the nine states that do not impose an income tax. These moves by businessmen can affect the state’s coffers, given the huge income they generate.
The American billionaire “John Arnold” pointed to another concern, which is that the tax imposed in the state of California on capital, which represents 13.3 percent of their profits, which is the highest in the country, will drop to zero at the moment when high-income earners such as “Music” decide. Leaving the state to other low-tax areas, and according to economic theory, tax revenue will decrease if the government imposes very high taxes, and revenue will increase when taxes are reduced.