How rich people avoid paying tax
(Originally by Instgram user @newmoney.blog)
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@infobeautiful absolutely: seen that for a CEO with a life insurance backed by the real estate of the company. With a chain of countries through Luxembourg and finishing in the Isle of Man... wondering why...
@infobeautiful
The money was either imagined, made up, printed as numbers;
Or the bank was lending other people's money to the very rich person.
But do they ever get it back?
The money was either imagined, made up, printed as numbers;
Or the bank was lending other people's money to the very rich person.
But do they ever get it back?
@infobeautiful Pay your fair share! That can be adjusted up or down but why should it be $0?
@infobeautiful
One has to repay their debts though, so they probably have to sell some assets in the process and get taxed for it. Plus they pay for the interest.
Only value I see in the 3rd scheme is it spreads the payback over many years, thus incurring less taxes in the short term (but as much as #2, plus interest, overall).
@infobeautiful There are so many ways to pay less tax or no tax that whenever I see this graphic, I wonder why this illustration chose these two strategies.
@infobeautiful
This scam is how the billionaires use all our resources THAT WE PAY FOR to get rich and then don't pay a dime in taxes. That's why we need a wealth tax. They are taxed on their worth not their "income". I think 75% for anything over $500 million would be equitable.
This scam is how the billionaires use all our resources THAT WE PAY FOR to get rich and then don't pay a dime in taxes. That's why we need a wealth tax. They are taxed on their worth not their "income". I think 75% for anything over $500 million would be equitable.
@infobeautiful In some countries it goes simpler. If you get so rich that tax inspector fear you, you will not pay taxes at all.
And often in these countries you should become (in)formal part of the state by joining special forces/secret police/KGB/FSB/something-like-that/largest-mafia-clan/bureaucratic-sect to get THAT rich.
And often in these countries you should become (in)formal part of the state by joining special forces/secret police/KGB/FSB/something-like-that/largest-mafia-clan/bureaucratic-sect to get THAT rich.
@infobeautiful and now add the pyramid schmes like churches/charities to the mix.
@infobeautiful
Risky if the stock tanks, but YOLO.
@infobeautiful ... and if the stock tanks they declare bankruptcy because they can't repay their loans and the bank gets an FDIC payout. :)
If it REALLY tanks congress will pass a bill to make the payments.
This is after they used tax funded grants to inflate the stock to begin with.
I used to play this version of Monopoly with my sister. We lived on a farm so she had no choice.
@infobeautiful We pay taxes so the rich don't have to
@infobeautiful I wonder who could have designed such a system?
@infobeautiful Attempt at better alt text:
#Alt4You
3-column illustration with heading How Rich People Pay No Taxes.
Normal: CEO gets $1 million in salary, pays 40% income tax, keeps $600K.
Less Tax: CEO gets $1 million in company stock, sells stock, pays 25% capital gains tax, keeps $750K.
No Tax: CEO gets $1 million in company stock, uses stock as collateral for loan, spends borrowed money. On paper he has no income, stock continues to appreciate, tax is only paid if assets are sold.
#Alt4You
3-column illustration with heading How Rich People Pay No Taxes.
Normal: CEO gets $1 million in salary, pays 40% income tax, keeps $600K.
Less Tax: CEO gets $1 million in company stock, sells stock, pays 25% capital gains tax, keeps $750K.
No Tax: CEO gets $1 million in company stock, uses stock as collateral for loan, spends borrowed money. On paper he has no income, stock continues to appreciate, tax is only paid if assets are sold.
@infobeautiful Column 2 is wrong. They would pay regular income tax on that 1m of stock. Capital gains tax rates would only apply to any growth in its value beyond 1m.
@infobeautiful
25% wealth tax/year, dropping to 5% when they're down to $78m
@infobeautiful the alt-text calls it a satirical depiction – why? What about it is satirical?
And why is the 3rd scenario the last? Where is the 4th scene, where the company of the CEO is also the „bank“ lending the money, thus actually keeping the stock and paying the salary tax-free?
@infobeautiful
Do they not pay interest on the loan?
@infobeautiful Ordinary people can do similar things, like taking a 401(k) loan, which is essentially borrowing money from yourself.
@infobeautiful
World war, stock market collapse, and second world war is how regular sobs like us deal with correcting shit like that.
World war, stock market collapse, and second world war is how regular sobs like us deal with correcting shit like that.
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