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The Morbidly Rich Are Different — They Don’t Pay Taxes | News, Sports, Jobs

There is one week left until tax day. For most Americans, it’s time to pay the piper for the income they’ve earned well living for basic expenses like housing and food.

Except for the ultra-rich. Megabillionaires and their ilk pay…nothing.

There are plenty of ways to evade taxes, but last year ProPublica revealed the go-to tactic, which is so simple you don’t have to be an accountant to figure it out.

The first step for them is to buy an asset. Something huge. Something worth enough to cover a wealthy family’s personal expenses for the year – $50 million yacht, $100 million corporation, real estate, whatever.

Now, do they just write a check from their personal account? Of course not. They don’t have to do that. Paying with personal property is for idiots.

They take out a loan. Maybe, just to be a little more greedy, they get a loan from a bank they own. The bank’s holdings increase, and they gain even more assets. Win-win for them.

Their current holdings and assets are so huge that they can cover the loan amount many times over, so this is their collateral when they repay the loan. Until they sell their assets, they have no income.

They live on borrowed money. Why? Because taking out a loan is not income. They do not receive a salary. Again, this is for idiots. They pay a miniscule interest rate on the loan – think several points less than prime – where if they took a salary they would have to pay a percentage in the high 30s on tax day.

This is not the end of their tax evasion, however. They and their heirs continue to avoid paying estate and inheritance tax even after their death by using trusts and foundations. Thus, their heirs inherit tax-free all their assets and shares, thus guaranteeing the preservation of the heritage in the family.

It’s called “Buy, Borrow, Die” – and it’s the only way to live for the ultra-rich class.

What do you think of President Biden’s plan for an uberwealthy tax hike now?

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