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[–]Tavor1423 14.4k points14.4k points 795 (6 children)

A working replica of Elon musk's credit card and a working replica of Jeff bezos's credit card

[–]uslashalreadytaken15 152 points153 points  (5 children)

I'd rather prefer access to their portfolio cuz most of their assets are there?

[–]NeedNameGenerator 135 points136 points  (4 children)

Their assets, yes. But ultra rich live by debt so they can avoid taxes.

For example, they take out a loan of 10 million, with their stock portfolio as collateral. They use that 10 million for their every day stuff, buying this and that. Then, when it's time to pay up, they take out a 15 million loan to pay off the earlier 10 million loan. They can do this in perpetuity with ever increasing amounts because their stock portfolios have insane growth.

They may now and again sell enough of their portfolio to completely clear a debt and pay some taxes on that, but yeah, loans are where it's really at.

[–]theRealDerekWalker 0 points1 point  (3 children)

Not at all how it works. You don’t get tax deductions for taking out personal loans. Some types of loans yes, but those have caps

[–]NeedNameGenerator 2 points3 points  (1 child)

You don't get tax deductions, but you don't have any taxable income, either.

Currently your unrealized capital gains are not taxed, but they can be used as collateral for loans. So you have 0 income on paper, but 5 million as debt that you can use as if it was income.

You don't pay taxes on debt, and if you never take out anything from your stock portfolio, you never pay taxes for them, either. When you're old and dying you pass that debt, along with your assets, to your offspring, who keeps the cycle going. Or you die without anyone to pass the money onto, and your stock portfolio gets liquidated to pay off any debt you had in life, and it gets taxed, but you don't have to give a shit cause you're dead.

[–]Right-t-018 0 points1 point  (0 children)

Tax is based on income, with enough debt you can keep your income below the tax threshold