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Elon Musk: Officially a fraud and piece of shit. Official or unofficial war criminal?


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57 minutes ago, C-Man said:

No $1M "lottery" winner yesterday. Guess Elmo/Leon didn't like having his peepee spanked by the DOJ.

 

56 minutes ago, aggie08 said:

I figured he was going to keep the sweepstakes going, then use the DOJ as an excuse for why all the checks bounced.

If you never give out any money, there was never any lottery amirite? Checkmate, atheists. 

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On 10/21/2024 at 3:10 PM, Nivek said:

That is really all there is to it.  The oligarchical elements exist within every society and have for a long time.  If kept in check, it can be good for the society.  When let to run amok, we get convicted con-men like Trump and his moronic children elevated to some social status.   We should have predicted this with the rise of the stupid-ass shows like Kardashians and the rise of shitbags.     

I usually don't make "New surly slogan" posts, but ... 

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56 minutes ago, Captain Ron said:

What’s funny is that’s a shitty ad buy. You think the guys on twitter need convincing to vote for trump? 

sometimes you market on units sold, sometimes you market on revenue.

musk needs the revenues for investors, but he'll market the "number of impressions" metrics and those same investors will eat it up even though he's robbing himself to pay himself. 

elon might have solved the pyramid scheme!

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Gee whiz, what a shock

https://www.rawstory.com/amp/elon-musk-2669477305-2669477305

(Here's the WSJ coverage if that's more your cup of tea https://www.wsj.com/world/russia/musk-putin-secret-conversations-37e1c187)

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Elon Musk (AFP)

Daniel Hampton

October 24, 2024

Tech billionaire and vocal Trump supporter Elon Musk has talked regularly with Russian President Vladimir Putin for at least two years, according to a new report.

Several current and former officials for the U.S., Europe and Russia told The Wall Street Journal Musk has discussed personal topics, business and geopolitical issues, with Putin at one point asking Musk to avoid activating his Starlink satellites and providing internet service over Taiwan.

The report revealed that in 2022, the world's richest man was under public and private pressure from the Kremlin.

"In May 2022, Russia’s space chief said in a post on Telegram that Musk would 'answer like an adult' for supplying Starlink to Ukraine’s Azov battalion, which the Kremlin had singled out for the ultraright ideology espoused by some members," the Journal reported.

The article continued: "Later in 2022, Musk was having regular conversations with 'high-level Russians,' according to a person familiar with the interactions. At the time, there was pressure from the Kremlin on Musk’s businesses and 'implicit threats against him,' the person said."

That same year, Musk began pushing more Russian-aligned stances, including that SpaceX was losing money by funding terminals in Ukraine, as well as asking his followers on his app, X, to support peace plans that "mirrored some aspects of the Kremlin's offer to Ukraine," the Journal reported. Additionally, Musk has become more critical of American military aid to Ukraine.

The report comes after the Justice Department reportedly sent Musk a warning letter after he began a lottery for voters in swing states

Pretty interesting how his takeover of Twitter maps cleanly onto his interactions with russian handlers. First contact by putin was in May'22, he starts buying Twitter in August'22, and by November it's already underway getting turned into a fascist online hangout

Edited by Captainant
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Not to go full conspiracy theory but this may explain his all out political efforts in the past few months.  He may be running out of time before some of these excursions come back to haunt him.  I’ve always thought he seemed like he was spinning too many plates, but I thought it would be China, not Russia, that would cause him significant issues.  I also thought it would be Tesla, which has been his piggy bank, that would be where the issues surfaced first.

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2 hours ago, Hefeweizen said:

Not to go full conspiracy theory but this may explain his all out political efforts in the past few months.  He may be running out of time before some of these excursions come back to haunt him.  I’ve always thought he seemed like he was spinning too many plates, but I thought it would be China, not Russia, that would cause him significant issues.  I also thought it would be Tesla, which has been his piggy bank, that would be where the issues surfaced first.

I posted a page or two back, but he’s facing a lot of problems with his companies and multiple federal agencies.

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It takes a special combination or arrogance and stupidity to think you can regularly communicate with ex KGB (that’s being advised by modern KGB) without getting yourself manipulated and coerced. As if we needed any more evidence that this guy is dumb as fuck. 

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https://www.rollingstone.com/politics/politics-features/elon-musk-trump-tax-break-election-2024-1235141380/

 

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Thanks to a provision buried in the tax code, Elon Musk could reap one of the largest personalized tax breaks in American history if former President Donald Trump wins the 2024 election and fulfills his pledge to appoint Musk to a top government post, according to tax and ethics experts’ review of long-standing statutes. 

This special tax benefit — which is only available to federal officials — would be in addition to massive tax breaks Musk could reap if a new Trump administration further cuts income and other taxes for billionaires.

 

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Musk has poured millions of dollars into a Trump-boosting super PAC. His companies, Tesla and SpaceX, currently have billions of dollars of government contracts that could be regulated or expanded by a new government commission or cabinet-level department that Trump is promising will be headed by Musk. Trump has said Musk will be his new “secretary of cost-cutting” and Musk has said he “can’t wait” to work in a Trump White House.

The United States Office of Government Ethics, a federal watchdog agency, notes that “the basic criminal conflict of interest statute prohibits government employees from participating personally and substantially in official matters where they have a financial interest” — and that agency can require top officials to divest corporate holdings that create a conflict of interest in a government job. 

 

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A provision inserted into the tax code 35 years ago allows government officials to indefinitely defer all capital gains taxes on such divestment — a tax benefit worth potentially tens of billions of dollars to Musk if he is appointed by Trump to a top government post.

The tax benefit has previously been used by George W. Bush administration officials, including former Treasury Secretary Henry Paulson, whose divestment from his Goldman Sachs holdings were reportedly worth nearly half a billion dollars. 

 

Spoiler

The U.S. Senate has yet to confirm President Biden’s nominee for a five-year term to head the federal agency that would rule on Musk’s potential conflicts of interest — and the subsequent tax benefits. If the vacancy carries over through the election, a new Trump administration could appoint the replacement. In 2017, Senate Democrats proposed legislation to limit the tax deferral, but the legislation failed to advance.

“The idea of Musk coming in to run some sort of efficiency commission in a second Trump administration poses catastrophic conflicts of interest,” said Walter Shaub, the former director of the U.S. Office of Government Ethics, who battled the Trump administration over conflicts of interests before his 2017 departure from the agency. “I think it’s very likely that in a second Trump administration, it would be a Trump appointee making the decision on whether Elon Musk could have a massive tax break.”

Musk — currently the world’s richest person, with a $250 billion net worth — has been canvassing for Trump relentlessly, including by spending millions on a scheme that critics have said is an elaborate and potentially illegal vote-buying operation. He and his companies stand to benefit from a Trump victory — and already, his wealth has ballooned thanks to the first Trump administration’s tax cuts and accelerated government support of SpaceX.

“Entangled With The Federal Government”
Federal law requires officials to divest from personal business dealings that might conflict with their work. In the executive branch, the rules around disclosure and divestiture of conflicts of interests are directed and enforced by the independent Office of Government Ethics. 

Refusing to divest conflicts of interest could run afoul of U.S. Code 208, which subjects officials to criminal penalties for using their office to advance personal financial interests.

Should Musk join the Trump administration — either as a full-fledged cabinet member or as a chair of a commission — he could be subject to this ethics law as a federal employee, requiring him to potentially sell off his billions of dollars in assets before assuming the role. 

Trump has appeared to go back and forth about a potential role for Musk in his administration, saying in August that “[Musk] is running big businesses and all that” and therefore he didn’t “know how he could do that with all the things he’s got going.” Musk has continued to press the issue, although it’s not fully clear what kind of role he is envisioning.

When he first assumed office in 2017, Trump refused to put the hundreds of businesses he owned in a blind trust or sell off his assets; instead, he gave control over the daily operations of his companies to his sons and a business partner. The move was condemned by Shaub, then the Office of Government Ethics director, for breaking with decades of ethics standards.

Trump’s cabinet members followed suit. At least four appointees maintained their ties to business groups that they may have regulated. 
Don Fox, a former official at the Office of Government Ethics during the Bush and Obama Administrations told APM Reports at the time, “If the boss doesn’t care, why should you, then?”

But Trump’s own holdings pale in comparison to Musk’s sprawling enterprises. 

“This man is so entangled with the federal government… it makes Trump’s own conflicts of interest look small in comparison,” Shaub said.

Last year, SpaceX, Musk’s aerospace and digital technology company, had contracts with 16 different agencies ranging from NASA and the Defense Department to the Department of the Interior. Tesla, Musk’s electric vehicle venture, contracted with the Energy, State, and Defense departments. Altogether, Musk’s companies were awarded $3 billion across nearly 100 different contracts last year — and account for at least $15.4 billion in government funding in the past decade.

Musk “has massive involvement with the government in terms of contracting, there are a lot of ways he could wind up affecting his own financial interests,” said Shaub, explaining that Musk would almost certainly encounter these conflicts if he was appointed to a cabinet position. Beyond his massive portfolio of investments, his companies, SpaceX and Tesla, are frequently funded by, and feuding with, various federal agencies.

Meanwhile, federal agencies have targeted Musk’s companies for a range of incidents of malfeasance, labor violations, and consumer protection issues, leading to at least 20 recent investigations or reviews. 

If Musk were to take a position in the cabinet, he could directly discourage investigations or grant preferable government contracts to his companies on a wide range of issues.

“Obviously, if you get involved in anything having to do with climate change, the automotive industry, electric vehicles, obviously Tesla’s an issue,” said Richard Painter, a University of Minnesota law professor and the former vice chair of the ethics-focused nonprofit Citizens for Responsibility and Ethics in Washington. And that conflict arises with his other major tech company, SpaceX, around “the NASA program, the space program, any of that.”

“And then there’s X,” Painter continued, discussing Musk’s acquisition of the social media site formerly named Twitter, “if he’s going to hold onto X and social media — decisions about the Federal Communications Commission and all that, he’s gonna have to stay away from.”

Working Around The Rules
Could Musk join Trump’s cabinet without divesting his billions in holdings? It’s been done before.

Industry leaders are frequently invited to join government councils for the industry-specific expertise they may bring to policymaking. These experts often occupy advisory positions and make recommendations for policy — while they continue to operate within their industry. They’re also subject to minimal conflict-of-interest rules.

But Shaub said that the position Musk appeared to be seeking was likely, at the very least, the chair of such an advisory committee — which, he said, are usually classified as “special government employees.” Such officials are subject to the same conflict of interest penalties as full government employees.

“The conflict-of-interest law applies with full force to a special government employee,” said Shaub.

Other industry leaders have similarly tried to avoid divesting from their assets as they joined previous administrations, despite evident impropriety. Billionaire investor Steve Schwarzman, the co-founder and CEO of the Blackstone Group, chaired Trump’s business advisory council as one of Trump’s close outside advisers during his presidency — all while his private equity firm had an interest in administration policies. But the advisory council was not subjected to federal ethics rules applying to government employees.

There’s also a possibility that Trump could grant Musk a waiver exempting him from the ethics rule, allowing him to keep his business dealings even while he works for the government.

Technically, such waivers can only be issued when conflicts of interest are determined to be unlikely to “affect the integrity” of the position. But practically speaking, the Trump White House would have unilateral authority to issue a waiver to Musk, Shaub said.

“Once the waiver is issued, even if it’s inappropriately issued, it counts,” Shaub explained. And the Trump administration would have the authority to do so because, he said, “There’s no one to stop them from doing it.”

A 2018 Senate bill attempted to reinforce the requirements to divest “conflicted assets” for everyone from members of Congress and senior government officials to the president and vice president. The bill would have required officials to sell their “conflicted assets” and reinvest them in Federal Employee Investment Accounts, which are managed by the Treasury. That bill did not advance.

But perhaps the biggest benefit to Musk could come if he follows ethics standards and chooses to divest from his companies. By doing so, he could score an unprecedented tax break.

The tax break that Musk could win if he ultimately divests from his business dealings as a government official was created in 1989 as a way to “minimize the burden” for public servants who were forced to sell off property or investments that posed a conflict of interest with their work. (Musk could only qualify for the tax break if he received a full government employee position like a cabinet secretary — as opposed to a “special” advisory position.)

The Office of Government Ethics can, for any executive branch employee, issue a “certificate of divestiture” when they sell off conflicting business interests. This allows the employee to utilize Section 1043 of the tax code and defer capital gains taxes on the investments they sell — so long as they invest the money in a diversified investment fund, like a mutual fund. Technically, the tax is simply deferred until the new assets are sold. But if they are never sold, “the deferral is permanent,” according to tax attorney Bob Rizzi at the Washington, D.C.-based firm Holland & Knight. 

“One of the key provisions of the code is Section 1043 that allows you to further gain on required divestitures,” Rizzi explained during a recent presentation about executive branch appointments ahead of the 2024 election. “Section 1043 planning is a major part of planning for some of these appointments, and it can be a very welcome opportunity for somebody who is committed to going into the government and divesting and mitigate some of the costs of doing that.”
And there’s no limit on how large the tax break can be, meaning that it can be used to avoid paying taxes on millions, or even billions, of dollars in assets, so long as the money is quickly moved to a mutual fund or other qualifying account.

The Office of Government Ethics notes in a fact sheet that the divestiture program’s tax deferral is “not an employee benefit” and is intended only to “reduce the financial burden of complying with ethics laws.” But experts say many officials see the tax break as a perk. 

“It’s absolutely a nice benefit of government service,” said Painter. “Some people, we thought, wanted to go into government service so they could have the ethics lawyer get them a certificate of divestiture.”

In December 2016, weeks before Trump took office, a group of Senate Democrats took aim at the “little-known tax loophole” that allows cabinet appointees to delay their tax bill indefinitely. The bill, which was aimed at Trump and his appointees, would have limited the amount of capital gains tax they could avoid to $1 million. The bill was abandoned in 2018.

Because of the major financial benefits involved, tax law only allows government employees to defer taxes on business divestments that specifically resolve conflicts of interest.

“I have a hard time imagining how the richest man in the world could possibly divest enough to eliminate conflicts of interest,” Shaub said of Musk. So, as a result, he said, “in a normal world, I would see it as unlikely that he would get a certificate of divestiture.”

But under a second Trump administration, Shaub said, “I think it’s possible that they might do it.” 

Musk has gotten rich in part because he’s avoided large tax bills in the past. Thanks to exploiting tax loopholes, in 2018, Musk paid no federal income tax — and in previous years, he’d paid less than $100,000 on reported income that ranged up to $1 billion. His tax burden also doesn’t reflect the billions he owns in shares in his companies, a financial arrangement that allows the ultrarich to further avoid income taxes.

Musk’s many holdings mean his potential divestment tax break could be immense. Musk’s majority shares in SpaceX are worth tens of billions; he also has $73 billion in Tesla shares. And although X has dropped precipitously in value since Musk’s takeover, his stake in the company is still worth billions.

“I don’t think anybody should issue a certificate of divestiture for billions of dollars,” said Shaub, who emphasized that he supported the divestiture program in other, less extreme cases. “That seems like an abuse of the program.”

But the Office of Government Ethics has doled out big tax breaks to other appointees in the past. In May 2006, former President George W. Bush nominated Henry Paulson, then the CEO of investment firm Goldman Sachs, as Secretary of the Treasury.

Paulson sold off $484 million in Goldman shares upon taking office to avoid holding millions of stock in a multinational investment bank while also running the Treasury Department. And he received an Office of Government Ethics certificate to do so tax-free, avoiding paying likely tens of millions in capital gains tax.

Had Paulson held onto the stock, its value likely would have plummeted two years later during the 2008 financial crisis.

“There would have been at least a $60 million tax on that [divestment], but I got him a certificate of divestiture over at the Office of Government Ethics,” said Painter, who was the chief White House ethics lawyer at the time. “He sold the stock, bought conflict-free assets, and I don’t know if he’s ever paid the tax. I have no idea.”

 

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