But my taxes as a percent of my wealth are probably closer to 20 percent (e.g. 20,000 in taxes on 100,000 in wealth), than the 2 percent suggested here.
Yes, but you also pay tax on everything else including housing and every day goods via Sales tax. And as a percentage of wealth I’m sure that adds up to way more than 4%
Yeah and then they pay interest on that loan, which is income to the lender for them to pay tax on; then when the original loan comes due the billionaire either refinances and pays even more interest, or pays back the loan by selling their appreciated assets and then - yes - pays tax on the income. So either way the tax is getting paid, now or later, and you have no idea how frustrating it is to see people parroting this over and over and over, and downvoting you for pointing it out.
I assume that you pay tax on your income, not your wealth/assets, so that is something different.
But my taxes as a percent of my wealth are probably closer to 20 percent (e.g. 20,000 in taxes on 100,000 in wealth), than the 2 percent suggested here.
Yes, but you also pay tax on everything else including housing and every day goods via Sales tax. And as a percentage of wealth I’m sure that adds up to way more than 4%
But these aholes take loans out on their wealth, thus effectively using this wealth as cash. Cash that is not taxed.
Yeah and then they pay interest on that loan, which is income to the lender for them to pay tax on; then when the original loan comes due the billionaire either refinances and pays even more interest, or pays back the loan by selling their appreciated assets and then - yes - pays tax on the income. So either way the tax is getting paid, now or later, and you have no idea how frustrating it is to see people parroting this over and over and over, and downvoting you for pointing it out.
Yes, but the rest of us still pay a WAY higher percentage of our wealth AND income in taxes than they do. It’s a regressive system.
My post was in response to someone bitching about borrowing against property with unrealized gains to avoid tax, try and keep up.