Derec
Contributor
It has been vaguely claimed and handwaved, yes. I have shown upthread that because of interest, this strategy has limited utility in the long term. And indeed, even the polemical ProPublica piece shows that the billionaires they profiled declared high amounts of income and paid the appropriate amounts of federal income taxes.It’s already been discussed that some uber wealthy do not draw income but live off of loans borrowed against their assets, there for owing no income taxes.
The disconnect between "wealth growth" and "total income reported" is not that they borrowed the difference tax free, but that they did not use more than the reported income. This chart is for a five year period (2014-2018) which means that say Musk took out (and spent) ~$300M per year, while Bezos did ~$800M. That should be enough even for lavishly spending Jeff, don't you think? There is no reason to think they borrowed any more tax free. Even for Buffet, who "only" took out $25M per year, that is explainable more by his (relatively of couse) modest lifestyle rather than him borrowing against his paper gains.
And the so-called "true tax rate" is of course complete poppycock, since you can't use something that is not a basis for taxation as a denominator for any kind of tax rate.
True, but what does that matter? He more than made up for it by drawing a bunch in other years, and paying the appropriate tax.Musk in some years has drawn no income from his assets and therefore owed no personal income taxes.
It wasn't a housekeeper, but a secretary, and the details were kind of vague as to her income and taxation. We discussed that upthread. But it is interesting that she in the retelling became a housekeeper, a lower income profession than an executive secretary.Warren Buffet famously remarked that his housekeeper paid more income taxes than he did.
By the way, for laughing dog: I do not know what definition of "effectively nothing" you like, but $455M or $973M over a five year period is far from "effectively nothing" in my book.
