How Rich People Hide Their Money
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- Опубликовано: 21 май 2024
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The Treasury Department estimates that the ultra-wealthy are skipping out on over $160 BILLION of taxes every year. The methods they use can be shady, but many are perfectly legal.
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sources:
www.cbsnews.com/news/tax-evas...
www.cnbc.com/2024/02/12/jeff-...
www.cnbc.com/2021/09/09/top-o...
www.ed.gov/news/press-release....
www.npr.org/2022/08/25/111941...
www.propublica.org/article/bi...
www.propublica.org/article/th...
www.vox.com/money/23634085/bi...
www.whitehouse.gov/omb/briefi....
www.wsj.com/articles/elon-mus...
www.vanhollen.senate.gov/news...
www.nytimes.com/interactive/2...
Offshore accounts can be used to avoid taxes, but they're not foolproof. There are stricter regulations now, and hiding money can backfire if not done properly.
That's true. Improperly hiding assets can lead to hefty fines and penalties. Plus, there's the risk of the hidden assets losing value.
And even if you manage to hide your money, it's not necessarily working for you. It's outside the legitimate financial system, so you might miss out on potential growth opportunities.
Exactly. A strong portfolio should be transparent and well-diversified across different asset classes. This helps weather economic storms.
The problem is that people don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could help to earn a high in these challenging conditions.
You are right, The US economy is a complex beast, and a financial advisor can help you navigate it. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
Congress isn't debating the loopholes because most of them benefit from the loopholes.
Just like what Trump has said before.
@@SV-kr9fu It's almost like Trump knew what they were doing, because he's better at it... that's why he now owns half of them.
And so can you
@@Winner01562 Like most people I don't have enough money to even begin using the loopholes. And my point was WHY they wont fix the loopholes.
@@Winner01562 poor guy, believing what the rich tell you.. no matter how much people work, 99.99% of them will never come close to making enough to afford and actually benefit from those loopholes
Putting well-earned money into the stock market can be over emphasized for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $5M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me? I'm nearly 60.
If you're new to investing or don't have much time, it's best to get advice from an expert. Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Considering who funds the legislators' campaigns, I'm not expecting any tax law changes anytime soon....
Just like what Trump has said before.
@@SV-kr9fu and he's one of those benefactors. The 2017 tax law specifically had a carve out to allow losses in real estate investment to be harvested for 20 years, had from 5 years.
@@sonicpsycho13 : Yes, he also admitted to having taken advantage of the loopholes. And if you were in his position, you would have done the same (I would too).
@@Andres43280 : Well, he has rich donors too, just like the other guy.
I am not voting for him, because I like him; I just agree with most of his policies more than the other guy's policies.
@@SV-kr9fu before ADDING to them as well as cutting taxes for 0.01%. Which is how he grew the national debt faster than any president before him. And how in 4 years he was able to add 40% to the total national debt.
As for the "wouldn't you crap" no I would not rob from my country in "technically legal ways". Nor would I try to find ways out of being a man who "pays my bills" like he has done by stealing directly from thousands of workers by refusing to pay. And weaponizing courts against workers knowing they dont have the funds to fight his endless legal challenges.
But it is a good strategy for him to campaign on aknowledge problem. MAKE PROBLEM WORSE then go "see see I told you there was a problem". Its like a infinitely self fulfilling prophecy they can keep tearing this country down for their personal benefit. And use the "problem they created" as a election platform.
One lesson I've learnt from billionaires is to always put your money to work, and diversifying your investments. I'm planning to invest about $200k of my savings in stocks this year, and I hope I make profits.
You are right. The best approach I feel is to diversify investments- by spreading investments across different asset classes like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
That makes sense. I’ve been using a financial market expert for two years now and I own a six-figure diversified portfolio from investing in stocks. I want to diversify more this year, though.
Being heavily liquid, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your advisor?
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
“I hope” doesn’t sound very hopeful.
I learnt to manage my money through investments and it really works for me. They say money can't buy happiness but poverty can't buy anything.
There are so many ways to manage money and prepare for a relaxing future, we just always have to keep doing our best because whatever we plant now, we will harvest later, good or bad.
Investing wisely can significantly impact financial stability, offering peace of mind and more opportunities. While money can't buy happiness, managing finances well now will determine future outcomes. Let's continue making smart financial decisions.
As a novice, how do i get into investing properly and be profitable?
Angela Lynn Schilling is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment._
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
Well I feel stupid going to work
We all should
If you're only feeling stupid now, great. I've being stupid for about 15 years when I found this out and continue to work.
Why do you feel stupid?
Well that's the first step to any of the other way to dodge taxes.
Your hard work will eventually paid off 😅one day
Step 1: Be company chairman
Step 2: Own lots of stock
Step 3: Take out a loan using investments as collateral
Step 4: Use loan to buy more investments and assets
Step 5: Play "Where in the world is Carmen Sandiego?" metaphorically speaking
Step 6: ?
Step 7: PROFIT!
More like Cayman San Diego
Ok and how do they pay off their loans if they buy luxury goods with it?
Become too big to fail
@@j.b.2561they don’t have to, they only have to pay the monthly interest which is why some CEOs pay themselves so little salary; it’s just enough to pay the interest on the loans and to pay very little in taxes while the rest of their income is in the form of stocks. Then they just rinse and repeat.
@@j.b.2561
Get a bigger loan 😂
Then repeat until you kick the bucket
3:24 Giving Jeff Bezos the smile was a nice design touch.
Gotta love a guy who made a ton of money off his home state of Washington and then when it came time to pay some of it back he decided to leave and show them the finger.
@margaritoamargo6347 but he's from Florida and good on him. WA states greedy that's why retirees often leave. I'll never forget when they thought about putting a toll on I-5. It's crazy.
It's the Amazon logo, not a smile.
It's the Amazon logo, not a smile.
@@margaritoamargo6347 So are you saying that Jeff Bezos payed no taxes when he lived in Washington state? You should get in touch with the state dept of Revenue and let them know.
My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means. Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Leicia Zavala Perkins is the licensed advisor I use.Just research the name. You'd find necessary details to work with to set up an appointment
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
You keep calling it capital gains BEFORE the investment is sold. That is incorrect - it is unrealized gains. It cannot be taxed because it has no “real” value until it is sold.
There was a crucial detail missing from this video. Estate taxes. Anything inherited over 13.6 mil will owe estate taxes. This is actually decreasing back to 5.49 mil for tax year 2026. So basically, dying is only a "loophole" for the rich not the ultra rich.
There are also some pretty crucial details about hobby vs. business losses that got left out too. If a business has losses too many years in a row, the IRS can rule that it's a hobby and disallow the losses. There's more rules that determine what counts and what doesn't, but it's not a free for all like they describe.
@@shelbygardner1193right but isnt that the reason they sell such businesses? The constant exchange means such record cannot be established. That or they simply pheonix the business
theyll just put it in an irrevocable trust
@@sirdiealot53 Assets placed in an irrevocable trust are subject to lifetime gift limits. Gifts during your lifetime reduce the amount available at death for Estate tax exemption.
Now show us the justification where its 100% legal for politicians to do insider trading but an average consumer could spend life in prison for doing the same
It's not justifiable and should be illegal. However, there's a difference between insider trading and trading with public knowledge. The problem can lie in determining what's insider knowledge and what's publicly available knowledge.
In 2020, plenty of people could have acted on the assumption that pharmaceutical stocks would rise significantly once covid hit the news cycle.
There are plenty of people in Congress (legislators and staff), who are our were just regular people. They have 401k's, 529's, IRA's, mutual funds, etc. We can't make simply investments or owning stocks illegal for them.
Money. And the ability to give that money to those that look away
it's not legal for politicians to do insider trading. Insider trading laws apply to everyone. Do you care to cite your reference that politicians are exempt from inside trading laws?
Also don't forget that the interest expense paid on the massive amounts of debt that billionaires owe is actually tax deductible because it's secured against an asset! Same way that homeowners can deduct the interest on their mortgages, but billionaires get to take full advantage of this tax break as well. However, if you just have a personal loan from the bank, sorry! No deduction for you. Interesting how that works, isn't it?
I don't think that matters so much. The rich are not going to carry a debt and lose money in the interest. I believe how it works is that the rich will pay off those loans almost immediately. So there's little to no interest cost and the proceeds from cashing in the investment is not taxed because it is used to pay off a debt. The video didn't make that very clear.
@@jbluther How are they getting the money to pay off their loans if all their wealth is tied up in assets? Yea the video just skimmed that part. I need more info
Yep everything is completely and totally biased and unjust. This rigged "system" is despicable and the "trickle down" mafia is out of hand with their corrupt "citizens united" buying the Supreme Court to shred the 1st and 4th Amendments and farm us all as the livestock of the one percent
@@jbluther I think most are doing the opposite as long as earning > interest - tax deduction on interest + capital gain tax, which is the case most of time. so it makes every sense to borrow against their stocks instead of selling the stocks in terms of profit, company control, and tax implication.
@@Zizzarazzo They don’t pay off the loans, period. You pay the (very low) interest on the loans which is a heck of a lot less than taxes, as well as being tax deductible. The lender gets the principal back when you die, but it’s a fraction of your wealth by then due to compounding. Say I borrow $1M on my $5M investment and live off $100k/year for ten years, tax free. When the money has run out, I owe $1M… but my portfolio is now worth $20M because it doubled every 5 years. I borrow $5M so I can spend $500k/year for 10 years, and I’m carrying a $6M note - and my portfolio is $80M. I keel over and my heirs get $74M that I was never taxed on.
They need to have middle-class tax loopholes. Like tax-free savings accounts for buying houses or cars.
They actually have that here in Australia. It doesn't help 😅
Yea fak the lower class, loop holes for everyone except the poor
Canada have it for houses
it exists, its called negative gearing in Australia lol, could be something else in other parts of the world. It's not perfect as it causes a certain type of behaviour and could blow up if uncertain times occur and the economy moves out of its normal band range but for majority of the time it helps middle class dodge a significant amount of taxes
We need lower-class tax loopholes too
You definitely have my sub. This content is next level. For me Eledator was the turning point. Please keep doing what you do and keep being you, love it.
The system was designed to favour the rich, these loopholes are designed to further aid them, With inflation at 3.70%, I'm looking to enter the market now and ride it out as the economy improves. I'm putting together a $350,000 portfolio with Stocks and ETF's. Do you have any recommendations with solid cash flow?
Knowledgeable Investors know where and how to put money during a crisis in order to reduce risk and maximize returns. See a market strategist with experience if you are unable to manage these market conditions.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K.
Great gains! Can you share your advisor details? I'm gaining more cash flow from my job and want to invest in stocks and alternative assets to build wealth.
Great gains! Can you share your CFP details? I'm gaining more cash flow from my job and want to invest in stocks and alternative assets to build wealth.
'Amber Dawn Brummit' is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Thank you for your research. I find your videos are well done. RIght now I'm keeping an eye on Eledator
Doesn’t seem quite right to tap the like button, since I hate the reality you’re exposing…but I appreciate you exposing it, so I did go ahead and tap.
Given the enormous influence the wealthy have on Congress, via lobbying and cultivating personal relationships, I’m not terribly hopeful any loopholes will be closed.
Taxes are so overly-complicated, it's ridiculous
Amen!
The vast majority of Americans can file a one page "EZ" form. (edit: I was wrong)
@@THE-X-Force The EZ form was discontinued in 2018. Although the regular 1040 form became a little simpler at the same time.
@@PrometheusMMIV Thanks for correcting me. I haven't personally filed in a long lonnng time. Seems crazy they got rid of it then .. I remember the guy in charge at the time saying it was going to be reduced to the size of a postcard. They even made mock-ups. I suppose I shouldn't be surprised.
More complicated means more people leave money behind
*Hallelujah 🙌🏻!!!!! The daily jesus devotional has been a huge part of my transformation, God is good 🙌🏻🙌🏻. I was owing a loan of $49,000 to the bank for my son's brain surgery, Now I'm no longer in debt after I invested $11,000 and got my payout of $290,500 every month…God bless Mrs Christy Fiore ❤️*
Hello!! how do you make such monthly, I’m a born Christian and sometimes I feel so down of myself 😭 because of low finance but I still believe God
Thanks to my co-worker (Alex) who suggested Ms Christy Fiore.
She's a licensed broker here in the states🇺🇸 and finance advisor.
After I raised up to 525k trading with her I bought a new House and a car here in the states🇺🇸🇺🇸 also paid for my son's surgery….Glory to God, shalom.
I've always wanted to be involved for a long time but the volatility in the price has been very confusing to me. Although I have watched a lot of RUclips videos about it but I still find it hard to understand
feel like hiding money implies economic corruption.
the game was rigged from the start
@user-cl1rq1sg8m It's not a game, it's a massacre.
That's what happens when the game is "rules for thee, written by me"
It's not corruption if the rules completely allow for it to begin with. That's why the rules (laws) need to change
@@judgetwelve
I love when people complain about this, they leave out the fact that they live in a Democracy and this rule applies to everyone, even the homeless bum. And so there's nothing stopping everyone from using it, but essentially the rich behave like the students that get straight As in school and then they complain at them getting straight As, whilst they themselves are bringing in Fs or Ds for their own grades. Maybe get better financially educated and stop your whining, all this information is publicly available and there are thousands of RUclips finance channels explaining it, but nobody wants to do jack other than complain about their piss poor understanding of "loopholes".
And yeah it's a piss poor understanding of loopholes, because everything would be a loophole under their definitions use. Using your children under the EITC as a deduction to pay less taxes and get tax credits? Loophole. Using childcare and medical insurance payments to pay less taxes? Loophole. Using student loan debt and school costs to pay less taxes? Also a loophole. Every loophole they complain about the rich using, they also have access to use, this is not an exclusively "rich only" club.
The only difference between the rich and the poor is that the rich have more money to work with and the poor have less money to work with and so the compounding interest rates on poor people's wealth will be smaller than those of rich people. The poor can very much do "Buy, Borrow, Die", the poor can open up LLCs and use them as ways to lower their own taxes (I'm not gonna delve deeply into this), they can move to a different state to avoid taxes, the poor can do strategic sell offs of assets at a loss to pay less taxes. BUT THIS ALL REQUIRES EFFORT FROM YOU.
7:35 such a stupid idea - is the government going to give them money for their unrealized losses as well? And for people who think not my problem since i dont have a 100mil realize that normal income taxes started off as only for the super wealthy and now we all have to pay it.
it's just an all around poorly researched video. PBS Should be ashamed to be associated with this video.
Class warfare as the government gets bigger and bigger…this is just propaganda
Step 1: Be a billionaire
This guy went from Ned Flanders’s to Tame Impala. Living life at the extremes fr
looks horrible
a glowup from all that PBS cheddar! 😎
what do you mean, it's the same guy that appears at 1:01?
I thought they had changed it, cause for real it ain't anything like the one I remembered
😂😂😂
I thought she got a new husband
We experienced the pinnacle of our era, but it is now gone. Like what happened to Rome, the corrupt administration will bring this nation to an end. My condolences go out to anyone who is close to retiring and may be worried about whether their pension will be enough to pay the rising cost of living. Insane fiscal policy, poor regulatory policy, poor energy policy, and poor foreign policy
50 and early retirement. I'm very worried about the future and where we're all heading, especially in terms of money and how to get by. I'm considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Her name is “VIVIAN CAROL GIOIA” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Thank god this hyper-leftist-hate-America explanation is here. I was worried I wouldn’t have anybody to point at and laugh.
Yeah, this is socialist propaganda
If you can’t beat em, join em! I just tuned in to learn how to avoid taxes when I grow my income.
The "Loophole"
>Takes out a US$40 Billion loan from banks at 2% interest and uses their hundreds of billions in stock value as collateral
Average worker: *surprised Pikachu face*
Where did you get it's at 2%. Tbills average 5.5%
@6:20 No, losing money on a business is never a good thing. It would make zero sense to buy a business and lose $10M on it for the sake of saving $4M in taxes.
Removing stepped up basis makes a lot more sense than taxing unrealized gains
THIS THIS THIS. Taxing unrealized gains is totally idiotic, and this step up is the real loophole
They already did that.
Anything tucked away in an irrevocable trust and kept out of the estate doesn't get a step up in basis.
Anything that gets a step up in basis is counted against your estate tax exemption or hit with an estate tax if the estate is big enough.
Definitely need to tackle the no limits "trickle down" mafia aristocracy that shouldn't exist
@@ryann8348 You're absolutely not seeing the bigger picture. If you have 200K in stocks it might feel unfair to pay anything out of it, but this goes beyond just YOU! You are may feel that you "worked hard" to "earn" the ability to invest, but you fail to recognize how much you have been given as a matter of course. It is only the extreme outlier who have 40K in investments or more and were not given opportunity and resources beyond the wildest dreams of any real worker.
Relative. Neither of them makes much sense.
this is sad tbh
Using what income do they repay the loans in the "borrow"?
They might carry the loans indefinitely if the interest is say 2% and their portfolio grows by 6%. Also some of their investments might pay out dividends that they could use to pay down the loans. There are also situations that sometime arise with publicly traded companies that can result in a forced "sale" of their shares (often merger related) and associated taxes despite their best efforts not to voluntarily have a realization event - hopefully only a small portion of a portfolio is affected by this.
@@mikebarnes2294Thanks.
@@mikebarnes2294so they have to sell some stock to pay the loans?
Money is not meant to control people rather it is meant to be put to work producing more money for you. You cannot build wealth without putting money in its rightful place.
You're correct!! I make a lot of money without relying on the government. Investing in stocks and digital currencies is beneficial at this moment.
Thanks for the advice! I'm new to financial planning and wasn't sure where to start. Any tips on finding a reliable financial adviser or resource to guide beginners?
As a beginner, it's essential for you to have a mentor that is verified by finra and SEC to keep you accountable. I'm guided by a widely known financial consultant Stacey Macken
Stacey demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
I remember giving her my first savings $20000 and she opened a brokerage account for me it turned out to be the best thing that ever happened to me.
So move to Florida got it
@@Life_42 Why is that? I'm curious the advantages of Miami and/or Florida?
Tennessee is better but your choice.
Not unless you want to ensure your house or not die from a hurricane
or Texas or Nevada. Probably worthwhile to note that because a state doesn't tax income or capital gains does not automatically make them a no-tax state; whatever is taxed will be taxed greatly or government services and support will reflect the lack of revenue. Property and sales taxes get used to make up the differences, typically. Florida gets an extra whammy with hurricanes, so now one cannot afford to insure real property and dwellings in an otherwise strong real estate market.
Beautifully done you guys. I love all your videos. I like the fact that you don’t post too many videos and take time to make very valuable ones.
Some of these methods are truly for the rich. But some of them are used by normal, everyday Americans. Tax Loss Harvesting and Step-up Basis are not that uncommon.
Yeah especially since there is only a $3000/year carry over limit. The rich aren't benefitting that much from that
0:41 You could've stopped at "The ultra wealthy don't earn much of their income."
@mguntbecause they own assets that earn money.
@mgunt Because rich people are criminals. You rob a bank? You're a criminal! A bank robs the government and the economy? Perfectly "legal" apparently. "Stealing" food from a convenience store is a "crime" but stealing millions and billions from people's paychecks and the US economy? Acceptable apparently 🤷🏾♀🤷🏾♀😒😒
@mgunt What's in the self interest of the average to below average masses out there? To find someone else to disproportionately pay for it?
@mguntAlistair meant that regardless of how their income comes about, it isn't actually earned. No person's labor is worth billions, billionaires existing is in itself absurd.
You are not understanding what "earned" means in this context.
But how do they pay back the collateral loan? Do they inherit the debt to their heirs too?
Depends what you use the loan for but usually there is a mix of loans, elon did it to buy twitter, he expects twitter to make money and essentially pay back the loan through twitters (X's) business revenue. What this means is he keeps his tesla shares, his new business (X) pays back that debt for him and at the same time it grows in value, so debts are paid off through reinvesting into higher earning assets. Most of these guys know how much of the loan to use for endulgence and how much to use for business. Also, in all honesty when you have 10's of millions of dollars through successful business earnings, you aren't dumb enough to blow it on a private yacht that costs 10's of millions of dollars. You usually get a house worth a million, maybe a car and a few of lifes luxuries. Then you would take some cash out against your shares at a low rate of 3% - 6% depending on your relationship with the bank and invest the rest in high yeilding funds which returns more than that. Your income from the investments can then pay for the 1-3 million you borrowed for consumtive uses like your car and house. So say you borrowed at 6% against your shares for 3 million for your house, then borrowed another 6% interest and take out 7 million to reinvest it in something that returns 12%, could be a new business, could be into the financial markets, then those assets grow and part of those returns goes back to pay back your debts. You use leverage to get richer without having to pay taxes at all. Then you rinse and repeat.
The loan is usually taken out at a cheaper interest rate than the inflation rate. Meaning the companys' free growth pays on the debt.
I was wondering the same thing.
@@jaywyse7150I don’t understand. Can you explain it differently please?
@@VideoSiteAccess The investor is a great credit risk, always pays the bill on time and gets best interest rate (the lender may do other, more profitable business with the investor for other reasons, too), say 2%. The investment that secures the loan is making 8%. After the loan interest the investor is still making a return of 6% and the lender, getting their interest payment as contracted, have no reason to call the loan for final payment - it's a perpetual source of secure income. One borrows incrementally against the collateral, say 5% or so every year.
Love how the income tax at the beginning was represented by like 10% of the cheque flying away 😄Americans don't know how good they have it tax-wise.
Student debt relief should not be allowed. Pay your debts.
Previous generations used to be parents by 18. Politicians now say 18 isn't old enough to decide to take a loan
just b aware that the otherwise illegal and usurios interest scheme and mis managment by student loan conglomerates is the only guarantee u get that your loan cant b paid off. even people putting in 20yrs of public service did not get loans paid.
nterest scheme
So if $160 billion more was collected from "the rich," we would have a balanced budget? No.
It would be closer to balanced though. That represents about 10% of the current deficit.
5:21 graphic on the right is the 2nd T-Shirt I need from this channel
Still waiting for the 1st one to drop (IRS's "Whatevs. Pay me") 😂
2nd part of my comments that seem to get deleted...
On offshore accounts.
Most people follow the law, even if they're opening accounts in other countries. The assumption is that they're trying to 'hide' their wealth, but in reality, there are multiple reasons for opening accounts in other countries. Most people doing this are following the law, but people invested in this narrative assume it's only to 'hide' their wealth. The penalty for doing anything illegal is steep. Very few people risk it.
As for all the legal loopholes, the key work here is legal. They're not 'hiding' their wealth. They're following the law. If anyone is to 'blame', it's legislators that pass 'flawed' laws.
How Phil hides his mustache
I've been watching Two Cents for a good while now and I found this episode the most interesting so far!!
It's weird how much the male host changed, definetly prefered the mustache one
Skinny long hair makes him look skinny skinny. Long hair long face long torso. No balance for the camera.
@@yorbalindasonscreams hippie 😂
It's almost like is not even profitable to be a worker. Workers should do some challenge called "not going to work anymore" it would be hilarious.
In the borrow, buy, die strategy there is one thing I am unclear on. When they die, their estate has to cover the loans and probably have to sell assets to do so. Are the assets sold by the estate to cover the loans also on a stepped up basis, or do they pay the full capital gains tax?
well if the next of kin inherits the investments at 0 increased valuation as mentioned, they can sell part of them to repay the loans without having to pay any taxes since it was considered to have 0 appreciation in value once it went to the new owner.
Yeah they sell the stepped up assets
Also, loans, etc., that would get settled in estate gains figures are usually taken out by a shell corp, not the person themselves.
We would use life insurance to cover the loans when we die
Thanks for this thread.
Oh so that's why I have to declare that I'm not a US resident on local bank forms when I'm on the other side of the world.
People want to keep their money. What an idea
That Step up in Basis rule is astonishingly terrible. Here in Canada the capital gains are considered realized at death and the estate has to pay the taxes before distributing to the heirs (except to a spouse - things can be transferred directly to a spouse but the cost basis doesn't change). It makes for messy planning when someone wants to pass down the family cottage, but at least the taxes get paid.
Getting rid of the basis step-up probably wouldn't be constitutional in the US anyway. And any party supporting it would pretty much instantly hemorrhage voters in retiree states like Arizona or Florida. Old folks are not going to vote for someone who wants to get in the way of them leaving their assets to their kids. Young people may support that stuff (while they are young) but old people definitely do not. So you can pretty much write this one off as a policy wonk's pipe dream.
Isn't it something like 50% of the capital gain? I just saw something from The Plain Bagel that it may go higher. My dad is 92 has a condo and cottage both of which have gone way up in value thanks to NS real estate so not sure how things will work out tax wise.
This video is a little bit misleading, because they don't touch on estate taxes, which are similar to what you described. The heirs don't pay tax, but the estate certainly does.
@@shelbygardner1193 I did check that Plain Bagel vid. The tax would be now around 66% of the gain taxed at the estates rate but IDK. Sounds like there’s also an exclusion amount. Hoping when things do happen we can keep the cottage in the family.
I don't know what the exclusion amount is in Canada, but there's generally at least something. The US federal exclusion is pretty high, but a lot of the states' are smaller.
3:36 : Jeff's smile got me hahahaha
You call it "collecting art", I call it "tax evasion"
I'm favoured, $27K every week! I can now give back to the locals in my community and also support God works and the church. God bless America.
As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.
Yes she works with people all over the world, she's the best you can ever come across
Sure! She interacts on what's Apk using the digit below👎🏻
+1614
2453
The thing with regulations is that the rich always find the way to not pay taxes. They have an army of lawyers and financial advisors to help them continue doing that.
Everyone can afford a CPA. I have used one for my business as I grew from 40 to 80 k gross. Don't eat out for a few meals.
@mgunt I paid 1k last year to my CPA and I am not rich. I could afford that even when I was making less. Do you make less than like 30-35k a year? I mean at that point you're not really paying a ton of taxes anyway.
@@jrg305 i’m not complaining about my taxes. I’m just saying that regulators are always a step back, while the rich are a step ahead.
Guys stop defending the rich. You will not inherit their fortune by posting comments for them on social media.
You can too if you hire a good accountant. The US tax code is the US tax code. You can use the same deductions as the rich do.
These topics should be learned in school.
In these 8-9 minutes you guys told us way more valuable things that we can get in one year of economics in school lol
Thanks for the great summary!!
I am really worried about the current bank crisis/interest rates, these are all the signs of yet another 2008 market crash , so my question is do I still save in the United States dollar or is this a good time to buy gold or some other assets ?
Many overlook that banks are return-driven businesses. I don't trust keeping a large sum in a bank. Instead, I invest with guidance, enjoy the benefits, and save for retirement.
After the '08 financial crisis, I've learned not to trust corporations. Since 2020, I've been investing with a financial advisor and have had no major losses, so I'm not going back to relying solely on banks.
Given the current state of the market and the potential risks to the economy, I would advise that it's wise to hold onto some gold. Instead of investing blindly right now, it may be better to seek guidance from a financial advisor to make informed decisions.
Thanks for replying, You seem to know much, How did you go about it and can you recommend an advisor like yours?
Sharon Ann Meny just check her out. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in 2021 April due to the crash.
I was literally just thinking about this subject these past few days. Thanks for the video
I literally just Googled this topic yesterday! Thanks!
how do you pay those loans? dont you eventually need to sell some assets?
That’s what I’m trying to understand.
i dont get how financing lifestyle with loans dodges taxes, you still have to payback loans by selling investments eventually. I get that you want the investment to grow at a higher rate of return than the loan but im missing something here.
Ditto. Trying to get an answer myself.
The “Score Beyoncé tickets” line will not age well lol
The government set these rules, so it’s silly not to follow them if it saves you money.
This video is a PERFECT example of the economic illiteracy of PBS.
Example 1: Why is there a "step up" in basis on inherited stock?
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It's true that there is a step up in basis for inherited stock that applies to the inheritor's capital gains. But it's untrue that the step up isn't taxed (as the authors of this video either mistakenly or intentionally forget to mention). The step up in basis is taxed at the inheritance tax rate of 40% for the federal government alone. That 40% tax is paid on both the REAL increase in the value of the stock and the INFLATION driven increase. The inheritor pays lots of taxes even on inflation which massively enriched government to the detriment of citizens.
Why is that done? First, because a significant portion of the NOMINAL gain on a stock results from inflation. Inflation enriches government coming and going. People shouldn't be taxed for inflation which is why there is indexing on federal income tax. Second, there is a record keeping issue. Let's say, my Aunt Mini bought some stock in 1975. She passes away in 2025 and leaves it to me. For me to pay the tax on the gain, I would have to try and find her records from fifty years ago to determine what she paid for the stock. That would be a nightmare for taxpayers and even for the IRS.
Example 2: So called "tax loss harvesting".
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Let's say I invest in a factory that will last ten years. The proposition is that I will invest USD 20 MM and I will earn a profit of USD 50 million. My tax rate is about 50% (considering federal, state, local, and other taxes). So I pay USD 25 million in taxes. I would net USD USD MM leaving me with a 20% gain.
But here's the trick our friends from PBS (government funded) would like to use to get a free tax hike. Taxes are paid on an annual basis.
So in years one and two, while building the factory, I invested USD 10 MM and gained no revenue. I lost USD 10 MM each year, although I was hiring people, buying things, and helping the economy. Now my factory goes into operation. But for the first three operational years (years 3, 4, 5) I lose money. In years six through ten I make a fortune in profits. But those profits were only possible because of my investment and losses in the first five years.
The folks at PBS want to tax my on only my profits, ignoring my investments, costs, and losses. They won't let me reduce my profit by the USD 20 MM I invested or the USD 30 million in operating losses I took while getting the factory up to speed. They want to tax me at 50% on USD 100 MM. That is they are taxing me not only on my profits. But they're also taxing me on the amount I invested, my costs, and my losses. That is they want USD 50 MM in taxes. They want ALL THE PROFIT for government. THEY ARE GREEDY.
Here's the question. Would you invest (and risk) USD 20 MM just to hand over the all the profits to government? Neither would anyone else. The result would be no investment, no jobs, and no taxes paid. The effect of what PBS is suggesting was tried in the 1970s under Jimmy Carter. The stagflation that resulted was so bad that even liberal states like Massachusetts and New York voted to re-elect Ronald Reagan after he corrected the policies PBS is pushing.
Example 3: "Tax havens."
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"Tax havens" is the term smug leftists use to describe jurisdictions that don't tax their citizens into economic oblivion.
When you go to shop, you look for a store offering the merchandise you want at the lowest price. Stores with low prices are able to do so because they are efficient in how they spend their money. The smug leftists in this video would probably accuse you of choosing a "retail haven" if you shop at Target rather than Macy's.
This exposes the thinking of our smug leftist friends. They criticize states such as Texas, Washington, and Florida for having low taxes without even looking at how well those states are carrying out the tasks of government for their citizens. THEIR PREMISE IS THAT HIGHER TAXES ARE ALWAYS BETTER. To them the happiness or well being of the citizens counts for nothing. All that matters is the imposition of confiscatory taxes.
I see leftists on campus all the time. The two presenters have the same smugness as those on campus.
Well stated.
My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. Thanks to larysa Caba, my portolio is doing really great and im proud of the decisions i made last year.
I feel one Of the greatest challenges that we first timers face in the ma rket is that we end up losing all we have,making it difficult to find ourselves back to our feet. My biggest advice is to always seek the services of a professional just like I did when I ventured into it for the first time. Big thanks to Larysa Caba. I now make huge profits by weekly through her services while still learning to stand on my own.
I think she trades for everyone I meet. I met her twice at a meeting in Germany and after her lectures from Ella I had to personally ask her to be my financial advisor. she is definitely good.
I have never seen a trader as open and transparent as Larysa Caba with her clients. The way she decides to make a profit for her clients. she allows you to express your fears and she still rests your fears and that is my respect. I don't normally comment on videos, but this word should be included. she is really cool.
I just looked up her name online. she is licensed with credible certificates and has an amazing track record. Thank you for the message.
I feel this is quite an easy one. You already have her name which makes it easy for you. Just look up her name online. I’m sure you will come across her. That’s how I found her too.
Question: How many of these things can we (as in, normal Americans making, say, sub-100k/year) do? Like, theoretically, I assume we could do most. But practically, why aren't we doing these things? Is it upfront costs? Is it purely education/knowing about these things? Is it a time factor? Are there other barriers to entry that I'm not qualified to even think about/realize? Is the IRS better able to see when people with less money jump/miss a loophole because the finances are more straight-forward (thus an audit is much easier)?
Depending on the opportunity in question there could be a mix of many of those things.
For example "Buy, Borrow and Die" only works well at a large scale as you need to be able to borrow money secured by a LARGE investment portfolio at very low interest rates (say something less than 3%) in order to have your portfolio continue to grow on average by more than the loan rate. Average people generally cannot borrow at such low rates. If you look at the publicly available margin account rates posted online by major brokers on smaller loan amounts these rates can be over 13% on a margin loan of less than $25K - this is over twice the expected 6% long-term average return you can expect on a diversified portfolio over the long run.
If you want to save additional money for your retirement (or work somewhere that does not offer a 401(k) or similar type of plan) you can put money into in an Individual Retirement Account. This can be a great way to either defer or avoid taxes on investment growth that will support you in your retirement. One problem with this is YOU need to take the initiative to set this up and fund it appropriately. Some people (generally once this account has grown a decent amount) move this money to specialized custodians that enable investment in things beyond stocks, bonds and other publicly traded paper investments. However most people don't know you can do this and these custodians have significantly higher fees than the mainstream ones most of us are familiar with. This can be really good depending on the types of opportunities you might have access to that would benefit from your accumulated retirement funds.
Depending on the type of health insurance your employer offers (and that you select during open enrollment) you might be able to put money into a Health Savings Account. A LOT of people either confuse this with the more restrictive "Flexible" Spending Account or don't understand the long-term value of this account and either don't use it or only put enough in to cover expected out-of-pocket costs. If you have a qualifying high-deductible health plan it is best to contribute the maximum allowed to this account (ideally more than your expected expenses) and once you have built up a balance over a few years begin investing these funds for long-term growth. This is a great way to supplement your retirement savings as a large part of expected retirement expenses are medical in nature. At the barest minimum you can reimburse yourself (tax-free) your Medicare part B premium.
Once you have utilized employer sponsored retirement accounts, IRA's and (if eligible) HSA's you may need to invest additional money using a taxable account. In this account any interest and dividends earned are taxable as earned and if you realize capital gains from selling investments those are taxable as well - though as mentioned these gains can be offset by also selling investments that have gone down in value as well. Key to this is you have to know about it and be cognizant enough to check your account right after a large market drop to see if your taxable account has any losses to harvest.
Above all these ideas all require that you earn more money than you need to live on and are able to put some of the additional funds towards investments that will grow in value long-term. If you live "paycheck-to-paycheck" none of these ideas will be that helpful for you. Upfront costs, time and learning can all be a part of why some people are able to make tax reduction opportunities work for them and others cannot.
By the way the foreign accounts mentioned are not very useful for most Americans as the income they earned is legally just as taxable as that earned by an American based account. These also have to be disclosed on both your annual tax return and a separate filing known as a FinCen Form 114. These generally only make sense if you are actually living in another country where it makes sense to have a local bank account to manage your money and easily pay your local expenses. In some countries there can be an "asset protection" benefit to having money there, but that generally requires a trust and not just a personal account.
@@mikebarnes2294 Thank you for taking the time and effort to type all of this out for me. I really appreciate it.
New law that just went into effect is closing one or more of those loopholes. ' Corporate Transparency Act ', no more shell companies. Well can use a shell company, but each one must have a unique address down to the room in a building and a face+name that is running it which include all legal documents (so no more fake person running a shell company). So places like delaware can no longer stack 100's off thousands of businesses to a single street address.
They should be able to hide they’re money and so should you , no one should have to pay banker there’s income it’s not the American people fault that the government borrowed money from devil worships that’s on you I’m not paying for wars and sex trafficking I refuse just say have blessed day
Reminds me of "The Tax Poem."
"Tax his land, Tax his bed, Tax the table at which he's fed.
Tax his tractor, Tax his mule, Teach him taxes are the rule.
Tax his work, Tax his pay, He works for peanuts anyway!
Tax his cow, Tax his goat, Tax his pants, Tax his coat. Tax his ties, Tax his shirt, Tax his work, Tax his dirt.
Tax his tobacco, Tax his drink, Tax him if he tries to think.
Tax his cigars, Tax his beers, If he cries tax his tears.
Tax his car, Tax his gas, Find other ways to tax his @ss.
Tax all he has, Then let him know, That you won't be done till he has no dough.
When he screams and hollers, Then tax him some more, Tax him till he's good and sore.
Then tax his coffin, Tax his grave, Tax the sod in which he's laid.
Put these words upon his tomb, 'Taxes drove me to my doom...'
When he's gone, do not relax, it's time to apply the inheritance tax."
Fantastic, how we keep hearing that there is no public money for anything while this happens legally
Rich people wine about inheritance tax all the time. But that is just a distraction. The real tax cheat is the step up in cost bases. A way they can use this loophole without dying is to gift assets to all their older relatives on the condition they put in their wills the assets back to the original owner. Then when the older relative dies the original owner can sale the assets without paying income tax.
Thanks for the tips. It is the duty of a person to legally minimize their taxes. College loan forgiveness is just one example why paying tax is bad.
Regarding the "Buy, Borrow, Die?, If someone takes out a loan on their investment, but dont sell their stock, how do they make payments on the loan to pay it back?
Refinance. I.e. borrow a bigger loan to pay off the old one.
The investment could pay out dividends which could be used to make payments. Also I've heard its worth it to carry these loans since their interest rates are lower than the long-term expected return on a diversified portfolio.
@@fishroy1997 doesn’t sound sustainable unless you own large assets right?
@@mikebarnes2294 “carry” meaning to have the loan vs an investment account?
@@mikebarnes2294Thanks for your reply.
My takeaway is to not looks for ways to earn a pay check, but rather invest your time into your own business or even hobbies!
😂
Can confirm, these financial and legal tools are available to everyone, but you have to have the assets and proper structures first before you can benefit from the 400+ deductions available to business owners and real estate investors.
I paid 1.09% two years ago, and 4.9% this past year. Most poor pay really low if any taxes..
Great episode. The tax laws are confusing so that less people understand them. A Roth IRA or Roth 401k is a great way for the middle class to avoid paying taxes in the future on any gains that their investments make.
Ya gotta pay taxes when you pull that money at 76 😅
@@brooklyn3299that is normal iras not Roth. Roth is pre tax so no tax in future.
@@richardmenz3257 Still get taxed before contributing. You either get taxed in the front or taxed in the back 🍑 🍆
@@brooklyn3299 yeah but looking at the rate now taxes prob be higher later so locking in lower now is nice. But if gotcha. I mainly use Roth as a 2nd emergency fund. I have 28k in it that I can withdraw without penalties which you cannot do with normal IRA.
@@brooklyn3299The growth/gains is Tax Free in a Roth IRA & Roth 401K. In a Traditional IRA & Pre Tax 401K you pay taxes on the growth/gains.
I lost over $75k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Patricia Annie Brooks.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
You trade with Annie Brooks too? Wow that woman has been a blessing to me and my family.
YES!!! That's exactly her name (Annie Brooks) so many people have recommended highly about her and am just starting with her from Brisbane Australia🇦🇺
I'm new at this, please how can I reach her?
Her good reputation already speaks for her .I’m also one of the beneficiary of Annie Brooks. So happy I gave it a trial after being skeptic of the process.
The other ways to minimize your taxes is forming a C Corp. The C Corp income tax percentage is less than individual tax percentages. The challenge is how to take distributions from the C Corp in a manner that doesn't trigger the second layer of income taxes for individuals. For example the large C Corps can buy golf memberships for their executives and claim that those expenses are ordinary and necessary. A good tax attorney decides if the golf membership is taxable income for those same business executives. That is why tax attorney make good money.
I'm curious about your tax spreadsheet. I am still in the accumulating phase. I usually get "worst case scenarios", like if you only withdraw capital gains and no basis for the full year it would have x% tax rate, which I apply to all gains.
How to be smart with your money. ❤
The step up basis seems like the one to get rid of - after a certain $ amount the step up shouldn’t apply. Don’t force people to sell but they shouldn’t have the basis reset
It already does that since stepped-up basis was designed to avoid double taxation with estate taxes. If you pass down more than $14.61M, you pay a 40% estate tax on anything above that ($13.61M exemption + $1M max tax bracket). That 40% is taxes on your whole estate, not just gains. That's why billionaires create dynasty trusts and other corporate entities, which don't benefit from stepped-up basis, but do avoid estate taxes since a 20% capital gains tax beats a 40% estate tax.
The Step-up is basis is also administratively useful as it avoids needing to sort through a decedents records to determine what was paid for an investment purchased decades ago. (Imagine trying to do this back in the age of mostly paper records before computers became commonplace.) That said with better stock basis tracking and overall better information gathering I could see a strong case made for eliminating the step-up in basis (or limiting it to situations where estate tax is actually paid on the property being bequeathed)
Stepped-up basis only benefits working class people to top 1% rich people, not the ultra-wealthy. The whole purpose of stepped up basis is to avoid double taxation because you pay a 40% estate tax on any estate above $14.61 million ($13.61M exemption + $1M for max tax bracket). So paying estate tax and capital gains tax would be a double tax. For the billionaires, a 20% capital gains tax is much better than a 40% estate tax (which taxes both gains and what you put in), so they set up dynasty trusts and other entities to avoid estate taxes (but they don't benefit from stepped-up basis either). The only people who benefit are people who pass down less than the $13.61M exemption since they get pay no estate taxes and benefit from stepped-up basis. If you all remove stepped-up basis, you're only increasing taxes for yourselves on the house and stocks you'll inherit, while the billionaires will be unaffected.
This was well done. So much so, it pissed me off! 😂🥴
this must have taken a lot of work. good job
PBS is economically illiterate. What scares me is that video like this may be presented to the pupils in government schools. I missed an example in my comments below.
Example 4: Taxation of expected FUTURE profits.
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Let's say the ACME company issues 100 shares of stock. In a given year it earns a profit of USD 100K. The government has two ways of collecting income tax on this gain. It could ...
(1) Impose an income tax on the company
e.g. 50% of USD 100k = USD 50k tax
(2) Impose a tax on the dividends paid to the shareholders
e.g. 50% of USD 1,000 per share times 100 shares = USD 50k tax
Here, government was really tricky. First it imposed income taxes on corporations. Later it imposed taxes on dividends. THIS IS DOUBLE TAXATION. The same income is being taxed twice.
But now PBS wants to go further. A share price is the present value of all EXPECTED future profits. So to tax unrealized gains in share price, the government wants a share of EXPECTED future profits that haven't even been earned yet.
That would be like the government ESTIMATING that, in your lifetime, you'll earn USD 2 million and demanding that you pay taxes on that today.
Wealthy people invest their money and generate jobs, good and services for us all. They are responsible for generating tax revenues through employee payroll taxes, sales taxes, inventory taxes, business income taxes, capital gains taxes, service taxes, etc etc etc. The jobs they create and the salaries paid generate income taxes, sales taxes, property taxes, etc etc etc. The goods and services they buy from suppliers create income for those companies and the process starts over again with their tax obligations and employees paying all kind of taxes. All of this is made possible by incentives offered through the tax system to risk their money on start up businesses, investments and ventures. No matter how much you want to feel like it’s unfair, remember that that paycheck you get started with someone risking their own wealth to provide the job you have. The two cents analogy in this video is biased and flawed. Check the data, the wealthiest 1% pay 43% of taxes while making 26% of total personal income. Most companies are struggling to make a 2% to 5% net profit after all the overhead necessary to run a business. And that overhead includes huge taxes from every part of business.
so if we all do the same nobody nationwide pays taxes....
lol do you really think the government would be responsible with that $160B? They’re over 30 trillion in debt. It would last less than 10 days and nothing would improve.
That guy’s transformation goes from High and Tight haircut and Mustache White cop that pulls you over to a LGBTQ guy who has a vegan restaurant.
He's doing his part for the Village People.🤑
I will tell you as a gay he looks worse with the long hair. I live in Austin and when guys look like that, which many do right now, I am turned off. Men have never looked good with long hair.
Realizing that buying twitter was not only controlling the narrative, but also a big ass tax write off with extra steps.
The house always wins.
1st step billionaires would create charities of their own to hide their money from plain sight and to reduce their taxes into nothing
2nd step they can then have a legal right to store their money on that charity to either invest or spend it also without having to oay any taxes they can invest in stocks or short term debts to securely make billions a year
It's nice to cash in early on a Two Cents episode
6:30 when those companies lose money, it isn't a good thing for them. That's a dumb statement. If you lose $100k from your business, you don't pay $100k less taxes. You pay, at most, like $50k less. That's still a net loss of $50k.
He who has the gold makes the rules. Good luck closing those loopholes.
Help me understand.. when you take out a loan.. you have to make payments.. you are also accruing interest so you'll owe money.. how do they get by this? And not owe the money if they can't pay it off since all their wealth is invested?
Yeah.. 🫤
They need to get rid of stock buy-backs too, which used to be illegal. And also ban representatives from trading, since they have insider info.
The initial statement of the irs estimating that wealthy are skipping out on $160B a year in taxes implies that they are doing so illegally. Then the video walks through both legal and illegal ways in which wealthly people may avoid paying taxes with the same tone of "the wealthy are cheats" and never clarifying how much of that $160B number is attributed to illegal or legal means of tax avoidance. This feels borderline "misinformation" to me.
Also the buy, borrow, die segment implies that every wealthy person who borrow large sums of money is doing it solely to avoid taxes and never discusses other reasons they may have, like maintaining voting control of their company, or just betting that their equity will have a higher rate of return than the interest rate of the loan
Thank you guys.