Outside Source
The ‘DOGE’ department proposed by Elon Musk could allow the Tesla CEO to divest many of his assets and defer paying taxes.
Follow up
Tesla CEO and the world’s richest man, Elon Musk, could get a deferment on potentially billions of dollars worth of federal taxes if he begins working for the United States government under President-elect Donald Trump.
Trump announced on Nov. 12 that Musk and Vivek Ramaswamy — a Republican rival-turned-ally — would be heading the ‘Department of Government Efficiency,’ or DOGE, once he took the oath of office on Jan. 20. The president-elect claimed that Musk — worth roughly $300 billion — and Ramaswamy would help “cut wasteful expenditures” in the federal budget.
Despite the name, only an act of Congress can establish a new government department, suggesting that DOGE may operate as more of an advisory commission. However, Republicans will hold a majority in the Senate and House of Representatives starting in 2025, meaning they could seemingly pass legislation creating a new department if desired.
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It’s unclear whether either man would require confirmation from the US Senate. If the position would label Musk as “an officer or employee of the executive branch,” experts have suggested the Tesla CEO could indefinitely defer all capital gains taxes by assets divested to comply with federal guidelines — billions of dollars that would otherwise have gone to the US government.
From Trump cheerleader to US government employee?
Musk, who in 2022 said Trump was “too old” to be the US President, supported the Republican’s reelection bid by appearing on stage at rallies, posting to his followers on the social media platform X — which he also owns — and funding million-dollar “giveaways” to voters in Pennsylvania. Shortly after news outlets called the election for Trump, Musk’s net worth increased by more than $20 billion as Tesla’s stock price surged.
SpaceX, owned by Musk, and Tesla have benefitted from billions of dollars in government contracts — something the CEO could have direct control over depending on how Trump decides to structure DOGE and Musk’s employment status. Even before the Tesla CEO’s position was officially announced as part of Trump’s transition process, many critics called it a potentially significant conflict of interest.
Ramaswamy said in a Nov. 15 X post that the DOGE ‘department’ would dissolve in 2026 after he and Musk had “downsized the government.” He has also proposed making cuts to the US Food and Drug Administration and the Nuclear Regulatory Commission.
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This article first appeared at Cointelegraph.com News
