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USA: Do I still file federal taxes if the federal government collapses? (lemmy.ml)
submitted 2 years ago by to c/asklemmy@lemmy.ml
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Like, if its collapsed, do I file? Do I even have to?

I am most certainly going to pay my state tax, but then what? What about stuff like my social security funds?

(I am asking for others because we're at that point now I suppose)

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[–] 27 points 2 years ago (7 children)

https://americansfortaxfairness.org/musks-11-billion-tax-bill-big-news-just-10-wealth-increase-far-year/

Musk may have paid little or no federal income taxes since at least 2014—despite his ballooning fortune—so the one-time payment of $8.3 billion (or even $11 billion) in essence covers multiple years. According to ProPublica’s analysis of IRS records, Musk paid no federal income taxes in 2018. Between 2014 and 2018 his wealth grew by $13.9 billion, yet he paid just $455 million in federal income taxes, a rate of only 3.27%.

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  • [–] -2 points 2 years ago* (6 children)

    Yep, that is how capital gains works for everyone, including you and me. You pay taxes on them when you sell, when you have income.

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  • [–] 6 points 2 years ago (3 children)

    You and me cant use those unseen capital gains as collateral to buy a propaganda machine.

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  • [–] 1 point 2 years ago* (last edited 2 years ago) (2 children)

    Put a percentage of every paycheck into an index fund (ex: VTI) and sit on them for a few years. You too will have capital gains.

    Average returns on index funds are 6%-8%/yr, compounding. They are a solid long-term investment.

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  • [–] 5 points 2 years ago (1 child)

    Tesla has sold quite a lot, yet paid almost nothing in taxes. So obviously it doesn't work that way for "everyone".

    https://itep.org/tesla-reported-zero-federal-income-tax-in-2024/

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  • [–] -1 points 2 years ago

    Tesla is not Musk, yes companies are taxed differently than individuals. Notably by profit, not income.

    Musk paid $11b in capital gains tax when he sold, that is how capital gains taxes work for everyone. Same as you and me.

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