US government job may allow Elon Musk to defer capital gains tax

Tesla CEO and world's richest man Elon Musk could get billions of dollars in federal tax deferrals if he starts working for the US government under President-elect Donald Trump.

Trump in 2016 On November 12, Musk and Vivek Ramaswamy – the Republican challenger – will lead the “Department of Government Efficiency” or DOGE after being sworn in on January 20. Musk — about $300 billion — and Ramaswamy said it would help “reduce wasteful spending” in the federal budget.

Despite its name, only an act of Congress can establish a new government department, suggesting that the DOGE could function as a more advisory commission. However, Republicans will hold majorities in both the Senate and the House of Representatives starting in 2025, meaning they could pass legislation creating a new department if needed.

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It is unclear whether either would seek confirmation from the US Senate. If the position designates Musk as an “executive officer or employee,” experts have suggested that Tesla's CEO could indefinitely shift all capital gains taxes on assets transferred to comply with federal guidelines — otherwise billions of dollars to the U.S. government.

From Trump cheerleader to US government employee?

In the year Musk, who says Trump is “too old” to be US president in 2022, has fueled the Republican Party's re-election bid by appearing on stage at rallies, posting to followers on social media platforms – which he owns – and funding millions of dollars in “gifts” to voters in Pennsylvania. Shortly after the news media called for Trump's election, Musk's fortune increased by more than $20 billion as Tesla's stock price soared.

SpaceX and Tesla, both owned by Musk, have benefited from billions of dollars in government contracts — which CEO Trump may have direct control over, depending on how he decides to structure DOGE and Musk's work environment. Even before the Tesla CEO position was officially announced as part of Trump's transition process, many critics called it a significant conflict of interest.

In a November 15 X post, Ramaswamy said the DOGE “department” would be disbanded in 2026 after he and Mook “reduce the size of government.” He also proposed cuts to the US Food and Drug Administration and the Nuclear Regulatory Commission.

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