This article was originally published by The Lever, an investigative newsroom.
Musk has pouredmillions of dollarsinto a Trump-boosting super PAC.
If the vacancy carries over through the election, a new Trump administration could appoint the replacement.
Tesla CEO Elon Musk (R) joins former President Donald Trump during a campaign rally in Butler, Pennsylvania, on October 5, 2024.JIM WATSON/AFP/Getty Images
In 2017, Senate Democrats proposedlegislationto limit the tax deferral, but the legislation failed to advance.
Deportations
Refusing to divest conflicts of interest could run afoul ofU.S.
Code 208, which subjects officials tocriminal penaltiesfor using their office to advance personal financial interests.
Musk has continued to press the issue, althoughits not fully clearwhat kind of role he is envisioning.
Trumps cabinet members followed suit.
At least four appointees maintained their ties to business groups that they may have regulated.
But Trumps own holdings pale in comparison to Musks sprawling enterprises.
Tesla, Musks electric vehicle venture, contracted with the Energy, State, and Defense departments.
Working Around The Rules
Could Musk join Trumps cabinet without divesting his billions in holdings?
Its been done before.
Industry leaders arefrequently invitedto 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.
Theyre also subject to minimal conflict-of-interest rules.
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.
But the advisory council was not subjected to federal ethics rules applying to government employees.
Once the waiver is issued, even if its inappropriately issued, it counts, Shaub explained.
That bill did not advance.
By doing so, he could score an unprecedented tax break.
Technically, the tax is simply deferred until the new assets are sold.
But experts say many officials see the tax break as a perk.
Its absolutely a nice benefit of government service, said Painter.
The bill was abandoned in 2018.
But under a second Trump administration, Shaub said, I think its possible that they might do it.
Musk has gotten rich in part because hes avoided large tax bills in the past.
Musks many holdings mean his potential divestment tax break could be immense.
Musks majority shares in SpaceXare worth tens of billions; he alsohas $73 billionin Tesla shares.
And although Xhas dropped precipitouslyin value since Musks takeover, his stake in the company is still worth billions.
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.
He sold the stock, bought conflict-free assets, and I dont know if hes ever paid the tax.
I have no idea.
