Here is what Musk is doing.:[/b]
However, ProPublica pointed out that his “true tax rate” for the five-year period . . .
Yeah, we covered this already. Did you not read my posts? ProPublica has invented its own tax rate on imaginary income that is not founded in reality. This was pointed out to you by several posters here. Are you capable of thinking for yourself?
Let's review again. ProPublica is saying that people should pay tax on any rise in the value of capital investment from year to year. For example, let's say you pay $100k for a house. Next year, the government appraises the value of your house at $110k. So according to ProPublica, you should have to pay taxes on that $10k increase even though you did not see a dime of it. The same goes for stock (except of course stocks owned by big liberal universities with massive endowments). So if you have $100k tucked away in your 401(k) and the value of that stock goes up 10% in a given year, then you would be expected to stroke a check to the federal government for that increase that you never saw. Think about that. Isn't that the dumbest idea you've ever heard?
And of course what happens if that value goes down instead? Wouldn't the government then be on the hook for paying out tax refunds on those losses? Are you down with that, too?