1/8 How many politicians know & understand that taxable income is not a measure of wealth? Income inequality misses the point. 'Buy, Borrow, Die'. "The average American derives most of their disposable income from the wages they earn working a job. The superrich www.theatlantic.com/ideas/archiv... - ThreadSky

About ThreadSky

annpettifor.bsky.social • 10 days ago

1/8 How many politicians know & understand that taxable income is not a measure of wealth? Income inequality misses the point. 'Buy, Borrow, Die'. "The average American derives most of their disposable income from the wages they earn working a job. The superrich https://www.theatlantic.com/ideas/archive/2025/03/tax-loophole-buy-borrow-die/682031/?utm_source=feed

Comments

annpettifor.bsky.social•10 days ago

2/8 ..are different. BUY. The wealthy dodge taxes and "amass their fortune by buying and owning assets that appreciate. Unlike wages, which are taxed the moment they are earned, assets are taxed only at the moment they are sold—or, in tax terms, “realized.”

annpettifor.bsky.social•10 days ago

3/8 BORROW "Instead of selling their assets to make major purchases, the superrich can use them as collateral to secure loans, which, because they must eventually be repaid, are also not considered taxable income. Larry Ellison, a co-founder of Oracle and America’s fourth-richest person...

annpettifor.bsky.social•10 days ago

4/8…"has pledged more than $30 billion of his company’s stock as collateral in order to fund his lavish lifestyle, which includes building a $270 million yacht, buying a $300 million island, and purchasing an $80 million mansion.”:

annpettifor.bsky.social•10 days ago

5/8 …."A Forbes analysis found that, as of April 2022, Musk had pledged Tesla shares worth more than $94 billion, which “serve as an evergreen credit facility, giving Musk access to cash when he needs it.”...

annpettifor.bsky.social•10 days ago

6/8 DIE. "According to a provision of the tax code known as “stepped-up basis”—or, more evocatively, the “angel of death” loophole—when an individual dies, the value that their assets gained during their lifetime becomes immune to taxation.

annpettifor.bsky.social•10 days ago

7/8 "Those assets can then be sold by the billionaire’s heirs to pay off any outstanding loans without them having to worry about taxes.”

Posting Rules

Be respectful to others
No spam or self-promotion
Stay on topic
Follow Bluesky's terms of service

Comments

Posting Rules

Reply