..borrowed income needs to be repaid plus interest eg by selling stocks and paying capital gains tax or by taking a loss if stock declines prior to sale...
Thanks so much for sharing how this works. I have been watching a lot of @ garyseconomics on YouTube and his content is all about why there’s growing wealth inequality and how we need to find ways to make it more feasible for working class people to acquire wealth.
And also note the No Tax plan and the Less Tax plan pay nothing to Social Security or Medicare. Saving the CEO another 27,000 in taxes and depriving the SS fund.
In order for a stock to be considered viable as collateral, it must have a speculative value. It must be speculated to, in the least, maintain its value. This is precisely what led to the housing crash of the mid-2000s.
It takes an act of Congress, I think, to redefine income to include living off of a loan. They should do it, obviously. If you use the money for living expenses, then it should be taxed as ordinary income. If you take a home equity loan out and use that to pay off your car, then that's income.
The rules apply to everyone. Unless you have high enough and diversified income though, few people can take full advantage of the options. Anyone who's income is earned strictly on salary has no opportunity at all. It is what it is. Life has never been fair...🤷♂️😔
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What we need is to close these loopholes and make sure they pay their fair share 😡
I also didn’t think a convicted felon and adjudicated sexual molester would be the president🤷♂️
Anything can happen
Economist. Ex Sec of Labor. Excellent teacher and communicator.
Tomorrow's lesson: How to stop a raping traitor from being president.
MBM