10 Ways Billionaires Avoid Tax On A Massive Scale - How Money Works

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Rich people didn’t get rich by paying a lot of taxes and for some of them avoiding uncle Sam has become their favourite pastime.
Say what you will about billionaires, but they can be a very creative bunch where their money is concerned.
Last year ProPublica a non-profit investigative journalism organisation was leaked a cache of IRS files that contained tax information about the richest people in America.
Dozens of journalists and forensic accountants were able to reverse engineer a number of systems that the billionaires used to pay much lower rates of income tax than most regular working Americans.
#tax #billionaire #howmoneyworks
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ProPublica Articles:
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Edited By: Andrew Gonzales
Music Courtesy of: Epidemic Sound
Select Footage Courtesy of: Getty Images
All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.

[@HowMoneyWorks]

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[@undercoverduck]

You can hide my comments but your choice of sponsors still remains abysmal and your audience seemed to agree. Don't support this company in any way.

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@@undercoverduck Exactly, in which supporting should include giving them your money, attention, or personal information. Don't sign up. Don't click their links. They cannot be trusted with any scrap of information they might get from you.

[@undercoverduck]

@@RickterBeek Now that I've seen them remove comments warning people about the dangerous business practices of the sponsor I'd second guess handing out my credentials to any company this channel takes sponsorship from. The channel's quite clearly aware of the issue by now and their response is to remove the comments from public view rather than rethink the sponsorship? Definitely shows where their priorities lie, and it's NOT with the health and safety of its viewers.

[@undercoverduck]

You (creator) do realize that you're dealing with people's health and safety, right? Specifically people who are at their most vulnerable?

[@RickterBeek]

@@undercoverduck Or just unsubscribe, it's what I did ¯\_(ツ)_/¯ Don't respect your audience, don't expect an audience.

[@sunnymodi4496]

The female unamed billionaire who inherited her oil company from her late husband is Phyllis Taylor of Taylor energy.

[@rsantana389]

Now you are going to get sued =(

[@sunnymodi4496]

@@rsantana389 thanks for the heads up

[@ciello___8307]

@@rsantana389 i mean, its not that secret

[@Karonclip]

We'll Sue you

[@TheNeodarkwing]

I'll see you in court.

[@samalamad774]

You could see that starting a business gives you much better control over your taxes than being employed.

[@jacobmackenzie4836]

You could just... pay your taxes though. Taxes are good, they pay for shit for everyone.

[@jjbarajas5341]

@@jacobmackenzie4836 you could say that the military's guns are really the people's guns.

[@austindobbins8957]

@@jacobmackenzie4836 business owners create more jobs by paying less on taxes. Why don't you start a business and purposely not write off any business expenses and see how long you stay in business?

[@haboubia]

@@austindobbins8957 Nah, they don't. When you give them a tax break, they do stock buybacks or buy a second house in Miami

[@itzbebop]

The govt is terrible with spending and investing money. Why do you wanna give them more of you money?

[@ktanner438]

"Bro just get a Cayman Islands trust with accounts in Cyprus and Jersey bro"

[@HishighnessMrL]

Uh huh ✍️😃

[@Football__Junkie]

Seems sus, bro. fr

[@edheldude]

Or just create an LLC for your business and buy real state so you can plan your taxes however you like.

[@Captain_Cinnamon]

U can really just start an offshore business with a bank account anywhere and call it a day tbh. Its important that u make cash offshore and not onshore

[@grazynawolska8160]

Meanwhile, in Ontario Canada... you pay worker tax of 20-50% plus from the money you have left over you are charged additional tax on purchases (HST) of 13%.... so your total tax rate is 33%-63%. Yep. Sounds fair.

[@theguythatknows]

Oh come on its not that bad that 13% is charged on after tax income so you only pay up to 56.5% tax 🙄 that seems reasonable 😂🥴

[@theguythatknows]

Although there are plenty of hidden taxes that'll make that up like tobacco and liquor tax that are counted into the cost of an item 🙃

[@grazynawolska8160]

@@theguythatknows yes I was talking in estimates but most people pay between 20-50ish percent on income. I was to lazy to be super precise and look up exact numbers. People just don't know that they pay so much because it's immediately taken off their job income before they get paid. Then with the left over money they are taxed 13% hst little by little on every little purchase (few exceptions) so they don't notice it either. Ingenious and insideous if you really think about it. If the gov gets from a third to two thirds of your money you'd think you'd expect more from them in terms of taking care of you as a citizen.... If you told this to the average ontarian they wouldn't believe you.... which is probably the most amazing thing of all. Anyways, I'm ranting because no one notices or thinks about this.... and the truly rich get rich because they pay 0.

[@princesmith8008]

@@grazynawolska8160 Is it like that only in Ontario or all over Canada??

[@grazynawolska8160]

@@princesmith8008 more or less with notable exception to Alberta and territories with only 5% sales tax instead of the typical 13-15% hst tax. Income tax varies also by province since its a combo of federal tax +provincial tax. We're very heavily taxed here... and now with all the talk of privatizing healthcare in Ontario (well quietly privatizing since public outrage at the direct idea) I wonder wth is the point of paying so much?

[@alexanderlyon]

One of these mentioned can and does benefit small-time real estate investors (as you mentioned). If you own a duplex rental, for instance, you can depreciate that asset a certain % per year. That means you could have let's say $10,000 in cash flow by the end of the year and put that all in your pocket but that still disappears on paper because of the depreciation of the rental unit. On paper, you earned 0 but your pocket is 10k fatter. As they say, "Tax laws are written by the rich."

[@CreativeMindsAudio]

Those are the people it should benefit. It’s not the fundamental laws that are the issue, imo, it’s that they apply to everyone and there needs to be some cap on it. If you earn x amount of money you gotta pay more or can’t use certain write offs. I’m talking income vs wealth. If you (not your company) are earning a billion a year in rental income you need to pay taxes on it without these easy write offs that are supposed to incentivize smaller investors.

[@reahreic7698]

The kicker is that property tends to actually appreciate in value, yet still somehow has depreciation for tax purposes...

[@Jfreire16]

@@reahreic7698 that’s true, but for real estate there is depreciation recapture to mitigate this upon sale of property.

[@jessebigfoot]

@@reahreic7698 Land appreciates, buildings depreciate. A building generally only has so much useful life before it either needs to be replaced or renovated. This is why investors like Buffet don't like when companies use EBITDA because it's an income metric that excludes, among other things, depreciation. Depreciation is a real cost, it's just a deferred cost.

[@alexanderlyon]

@@jessebigfoot Buildings depreciate. That's true, but property owners can also deduct the cost of most improvements, repairs, renovations, and all other expenses to keep the property in tip-top shape. It's as if they get to deduct the expense 2x, once when they pay the actual expense (of, let's say a new roof that year), and again when they depreciate the property on paper. That's a totally legal and common way it's done.

[@undercoverduck]

Research this video's sponsor before requesting their services. It's BAD. The creator is deleting my comments giving sourced criticism but I will not stand for it.

[@RexDeming123]

They also share your mental health data with third parties.

[@Ball.Daily11]

Yeah that service is extremely terrible and Therapist are given hundreds of people to service with little time and they are constantly changed the pay packages to pay therapist worst. When I see a channel advertising better help it really makes me think negatively of it.

[@jojomicheldu59]

All sponsors are scams anyway

[@whiteshadow7584]

It's probably not the creator who is deleting your comments tbh. KZbin automatically deletes most comments containing links.

[@devariojohns]

I can't believe I fell for this shit...

[@SisyphusJP]

If you ever wondering why a flat tax doesn’t exist this is why…

[@kingarth0r]

Youre better off talking to ai than betterhelp

[@Flor-ian]

0:47 those are some very expensive AXES!

[@edwardv4546]

💀💀

[@hleeyang3825]

They don’t need to. There are secured loans that only require payment on interest. So if you have an asset that appreciates at 7% and a loan rate of 3%, you can just keep getting more loans to pay the interest payments on your loans AND continue to get more loans to keep living life because you still own the asset which is still increasing in value.

[@CreativeMindsAudio]

0:49 graph is extremely misleading! you don't pay taxes on wealth growth, you pay taxes on income! not because your business or artwork gets more valuable in the eyes of some random person who makes that decision. Great video and glad you broke this stuff down! anyway I figured I'd break down that infographic I mentioned earlier: Actual income taxes paid: Warren Buffet: 18.96% Jeff Bezos: 23.06% Michael Bloomberg: 2.92% Elon Musk: 29.93% As you can see ALL of these people paid less in taxes than they probably should. What they probably should have paid: Warren Buffet: 46.2M (36.9%) Jeff Bezos: 1.55B (36.7%) Michael Bloomberg: 3.7B (or about 37%) Elon Musk: 562M (36.9%) Oh and these were JUST considering FEDERAL taxes!! Mainly because I assume that's what this chart was based on. someone earning 250k (think doctor/lawyer) by similar metrics would pay 57k in federal taxes or 23%. Seems like Elon was the most honest tax payer. Michael bloomberg was the least honestly represented in the chart.

[@jackduane5555]

Glad someone gets it

[@scwirpeo]

A stock isn't valued by "some random person". A stock is at value because the market rate demands that price for the stock. If the value of a stock goes up it is because the demand for the stock by everyone is greater than the supply of that stock. It's not some guy in a suit assessing an estate It's literally the entire global market that has determined the value of a stock.

[@CreativeMindsAudio]

@@scwirpeo wasn’t talking about stocks though. Private businesses and artwork have no easy value. Though if you do want to get into stocks that’s a complicated rabbit hole where in the end you realize most companies are overvalued and inflated. My point is: Just because someone says something is worth x doesn’t mean anyone will actually buy x or even want to sell it.

[@scwirpeo]

@@CreativeMindsAudio Estate tax still exists tho so all of those things can still be taxed at the market rate.

[@CreativeMindsAudio]

@@scwirpeo ah yes the estate tax! It’s like you weren’t watching the full video.

[@Globerson]

The infographic at 0:47 says it all. Taxes are not based “wealth growth” it’s based on Taxable Income. That said it’s actually closer to 20%, 25%, 30%, and 30%. Tax rates which are WAY to high to begin with, anything over 10% is absolutely ridiculous and unnecessary. The government should not be allowed to reach out and grab 1/3 of your income.

[@jackduane5555]

The idea is that some incomes are so large that even having such big fractions taxed still leaves the income earner with more than enough live comfortably

[@NicitoStaAna]

@@jackduane5555 the idea however Is government is so inefficient (even the purely good ones) Due to implications as a government - controls the legal supply side, also can set made up demand curves (ie, each house should have 1 fire extinguisher, and the brands has to be tested X% of total production so it'll be a technical limit on supply) - governments are natural monopolies, which is good for the tragedy of commons scenarios like police, fire, roads, climate, military (on some side) But horrible for Military (on some side), ie documentaries where the government buys 20-50 dollars per can of soda A money printer/near infinite money due to taxes is gonna mess up the demand curve naturally. If said entity prioritize whatever market they buy Lastly There's this statistic where if Amazon was sold for it's current price, wholly. Without a decrease in price (which is impossible since your selling a huge volume) And give it to the US government, that fund will dry up in 3 years Shows how inefficient Governments are. Edit: so the better question is. How much is too much? And why does everyone think giving trillions to NASA is gonna put us to space when it was SpaceX that made it efficient. Am I so old that I'm the only one to remember that the cost per launch was literally in the billions and now it's in the millions? If so, wouldn't you say the "right thing" to do is to pay the lowest tax possible (legally)? Ensuring that the tragedy of commons is maximized while minimized everywhere else?

[@crocfighter.1322]

@@NicitoStaAna "There's this statistic where if Amazon was sold for it's current price, wholly. Without a decrease in price (which is impossible since your selling a huge volume) and give it to the US government, that fund will dry up in 3 years. Shows how inefficient Governments are." Amazon's turnover is around half a trillion dollars a year, and their profits are a lot less than that. The US government provides services to a country of more than 350 million people. The only reason Amazon can make that much money is because the US spends a lot more than that on ensuring that business can be done. Enforcing property laws, arbitrating disputes, cleaning up the negative externalities and keeping shipping routes pirate-free. Incidentally, Amazon is worth ~$1.2 trillion and the US federal budget is around $6 trillion, that would take 3 months at most to spend. I think your figure might be for the department of defense.

[@jackduane5555]

@@NicitoStaAna that's not an argument for the inefficiency of governments. That could easily be explained by the sheer magnitude and variety of responsibilities that governments have

[@NicitoStaAna]

@@jackduane5555 And yet a congressman shuts down reusable rockets in the 80s as it would "destroy contracts on my state" (John Stossel interview to a NASA scientist that proposed reusable rockets and would've ended billions wasted to contracts and those billions could've been diverted to creating more advance space robotics/satellites instead of rockets) SpaceX V Nasa's rockets (same responsibilities/scale) Point is. Governments are incentivized by votes Private people/companies are incentivized by selling a product that society demands Which of these are more efficient/self-sustaining? Which led to my ideology regarding taxes. Society is literally better off by paying the least tax possible

[@stevek917]

This overlooks the fact that any loan a wealthy person takes out will have to be repaid at some point. This repayment will have to come from other income or from the sale of assets. Both of which will result in a tax liability. These loans only delay paying the taxes. Sooner or later tax will have to be paid. This why Elon Musk paid $41,000,000,000 in federal income tax in 2021 on sale of some of his Tesla stock. There are very good reasons to not sell an asset and take a loan instead. The assets value may be temporarily down. Or simply the fact that selling some stock may result in loss of control over the company. Jeff Bezos can't just sell stock in amazon whenever he wants. His ownership of the company could drop and he would no longer be in control. Also to sell stock there are all kinds of SEC rules.

[@jackduane5555]

I think the strategy is to delay the realising of the capital gain until after the owner of the capital dies

[@stevek917]

@@jackduane5555 Probably. I will admit that this stepped up basis idea makes no sense. The cost basis of the asset should stay with the asset after death. When the inherited assets are sold the capital gains tax should still be owed based on the original purchase price. Stepped up Basis was clearly created to allow the rich to create generational wealth and skip the tax.

[@sprinkle61]

@@stevek917 Stepped up basis was created to you wouldn't have to spend 100's of hours researching grandma's cost basis on 100 paper shares of ATT, which split, remerged, and split again hundreds of times, making finding their actual cost basis a nightmare of epic proportions.

[@stevek917]

@@theterriblepuddle1830 I agree that is not right. The cost basis, and there for the Capital Gains tax owed, should not just reset when an asset is inherited. The cost basis should stay with the asset and when sold Capital Gains taxes paid. But of course this is not what people like Elizabeth Warren want changed. No, she wants to create a new Wealth tax based on an assets imaginary value. Biggest problem with this is who decides what an asset is worth? The only way to place a true value on something is to sell it. Plus to pay her new wealth tax you may be forced to sell the asset. The other problem is you can't always take out more and more loans against the same asset. You'd have to make bigger and bigger payments. You also run the risk the asset will lose value and can no longer cover the loan repayment.

[@Beregorn88]

They could never repay the loan and the bank take the stocks they put down in liability. If there is also a tax break for the bank reselling those stocks as a result of the loan default, the circle is closed, and everyone involved just sold the stocks without paying taxes...

[@trevortrevose9124]

"One of the way billionaires avoid taxes is to die " me : oh

[@spiceygas1]

The diagram at 0:48 is not accurate. The percentages shown are taxes on total wealth, but NO ONE IS TAXED ON TOTAL WEALTH. You pay taxes every year on your INCOME + CAPITAL GAINS. If you compute it correctly, you see much more reasonable numbers (18%, 23%, 30%). [Edit] Clarification: No one in their country of residence (USA) is taxed on wealth. I presumed that was obvious, but I guess it needs to be said.

[@MadeInChinaPlat]

not only that in dollars they're paying the equivalent of several lifetimes for someone making let's say 250k a year which now live pay check to pay check

[@undeadblizzard]

One Dime talks about taxes. Basically your taxes does nothing on a Federal level. Our debt and World Currency is USD. Everything is digital. People thinking that their taxes will be used to fund Dirty Liberals and surrendering to Terrorism is good club is the problem. Billionare not paying taxes is still bad because their money will go to States and Cities who can't prints money The solution is to bully the Government who could just give Healthcare with a few key strokes. It always better to make decisions on a Federal level because States can't overide a Federal Order.

[@CreativeMindsAudio]

Yup! I went into a bit of detail in my comment too!

[@bolt5564]

It is misleading because it was not explained. Because billionaires use the net worth to take out personal loans this is good information to have in context. However been put in the video without being explained is misleading.

[@TheHamoodz]

Is this total tax paid in one year or over a lifetime?

[@thedownwardmachine]

I’m not poor enough to not have to pay taxes, but not wealthy enough to avoid taxes. On well, at least I can afford pizza and beer so it’s all good!

[@carlospulpo4205]

Ahh middle class life!

[@estebanb7166]

My quality of life is drastically better being “poor” than it was when I was middle class. Our system is broken, beyond repair. ‘Mercia!”

[@bohemianprince7944]

It is not good. It is complacency. The future generations will suffer because of comfortability

[@undeadblizzard]

@@bohemianprince7944 See Liberals are the thump card of Capitalism. Comfort divorce them from the Real World. Liberals are fine with the Status Quo and are okay doing bare minimum. Liberalism is really the Left Wing of The Right Wing philosophy of Capitalism. Dems and Republicans are two same of the same coin.

[@user-gz4ve8mw9l]

Selling your freedom down the river for pizza and beer precisely what they want of you.

[@Nick-zw7gg]

Imagine if Americans didn't love their sports. RIP billionaires sport team investment

[@Corkfish1]

Don't forget that estate taxes are voluntary. No matter how high they raise rates you don't have to give it to the government.

[@bromleybaratheon4638]

better help has no doctor-patient confidentiality. bad recommendation. You don't want these people selling your medical records.

[@RestoreSanityFear]

Please do something about the bots and scammers in your comment section

[@Dudanation12]

I think focusing on loans to pay for living expenses as a way to evade taxes is not the correct way to see it. They really only do this so they can avoid selling their shares to avoid not making money as the stocks continue to rise. As long as interest rates are lower than their company's growth, this is a no brainer way to continue profiting even on money they want to spend. It's not a tax evasion because eventually they will have to sell those shares to ever get the money and then they will pay taxes. If this was truly just a way to "evade taxes" then they would have no problem paying high interest rates on loans which exceed the growth value of the stocks. People do take out loans to invest into the stock market when interest rates are really low, so this isn't something that just Billionaires do.

[@paladinIV]

Doesn't this combine with the other techniques? e.g. leaving the loans until death and then the shares gets passed tax free to inheritors who sell enough for 0 tax to pay off the loan.

[@Naoconsigometer1nome]

@@paladinIV that 100% free stocks absolutly blew my mind

[@Cherry-pu4mx]

@@paladinIV the assets used as collateral are sold and paid to the lenders. It's taxed by the state before the lenders get their share. The assets are then passed down through inheritance, where the estate is taxed but not the beneficiary.

[@paladinIV]

@@Cherry-pu4mx Well in that way, then the estate pays the taxes in that case, this would mean that the rich guy will eventually pay the taxes and they are just delaying the inevitable. But this was not what was the message of the video (unless I misunderstood)!

[@iLikeMyOwnPosts]

Yeah but this guy can't get views without putting together topics that outrage plebs.

[@vaarrunn4617]

Hold on, when these guys take out a loan against their assets. How do they repay it back? That's something I can't wrap my head around.

[@caesaraugustus7587]

You don't pay it back. You keep rolling it over until you die and then your life policy pays it off. 😂😂

[@xXTedwarriorXx]

Another loan

[@noobulon4334]

They don't, these people typically have so much in assets that they can simply keep borrowing more money over time and pay the interest with more borrowed money, once they die the debt is settled with the estate

[@franciscodanconia4324]

The depreciation on sports teams is eventually recouped by the IRS because it lowers the cost basis for the team so when it’s sold to new owners the seller pays capital gains on the gain from the depreciated basis.

[@TheMasterhomaster]

Unless there’s another loophole the rich use to avoid those capital gains taxes. And of course there always is.

[@sprinkle61]

Did you even watch the video ? Buy Borrow Die. When you Die, the cost basis goes by by, and how many original owners of sports teams have sold them ? I assure you its not many, and why would you ever sell such a great tax deduction generator, when it has one last present to give you when you bow out ?

[@MrSupernova111]

Clueless! Sports arenas are heavily subsidized and the local population rarely reap a reward. There have been instances of the arena changing districts to screw the district that was supposed to benefit from the taxes paid by sports teams. The entire concept of subsidizing sports teams so the locals can be fed bread crumbs is pathetic!

[@franciscodanconia4324]

@@MrSupernova111 Dick. I was referring to the team and not the stadium

[@franciscodanconia4324]

@@sprinkle61 Yes, yes I did. And you do realize that if my dad has a $1B sports team that I inherit, I pay inheritance taxes on it when it's left to me. So it makes perfect sense to bump up the cost basis, or else I'm paying taxes on money I've already paid in taxes to the government.

[@Knnnkncht]

0:46 those damn axes

[@shreklifeforever]

Tax policy is implemented to influence social behavior. The reason capital gains are taxed at a lower rate than ordinary income is to influence people to invest in the stock market. This seems like a good idea but when people don’t even have enough money for emergency savings then a new tax policy should be considered

[@therearenoshortcuts9868]

TLDR: 1) borrow against assets instead of selling assets 2) avoiding capital gain on death through certain rules 3) focus on certain industries with special tax benefits (e.g. real estate, farming etc) 4) overvalue their own company reporting to IRS, then selling for a lower price to claim a fake capital loss (then use it to offset other actual capital gain) 5) use money to lobby the government for loopholes - lobby fee is lower than the actual tax

[@paulbrungardt9823]

Business owners do not pay any taxes--not ever--Taxes are apart of the business' expense. When government raises taxes, this increased cost gets added to cost of their goods & services.

[@cetriyasArtnComicsChannel]

It's not that they are creative, they wrote/rewrote the tax rules

[@kecho4125]

Everytime I watch a video on this side of life I wonder if its an absolute necessity to have such in-depth knowledge on money just to have enough so you can pursue your actual interests. I feel like there should be more to life than "must make monies" - like sure, get basics covered but after that there should be something more meaningful to life, no? Well I guess I can understand the satisfaction of seeing a number go up too, but isn't money a means to an end rather than the end itself?

[@Naoconsigometer1nome]

this is a criminal forensic video,you should pay more attention ahah

[@ememman1460]

sir, this is a subway

[@KingHepburn]

I own a business and by now myself and my business partner would be considered the 0.1% with the private business being valued at roughly 110M (and growing). I’m also a huge gamer I used to be master tier in league of legends, I played football on team Canada (not a huge achievement from Canada) and I’m just competitive. As you get more money you face harder opponents. It’s fun to grow something and I thrive in the competition. To me it’s not about the money but about the challenge to win everyday… Just wanted to share.

[@kecho4125]

@@KingHepburn yo, thats sick! From masters at lol to challenger irl, gg

[@KingHepburn]

​@@kecho4125 thankyou sir. Just know from the people I know it's not usually greed. It's just the need to win. That's not to say there aren't greedy people out there.

[@Packless1]

...why are there pictures of torches, pitchforks and guillotines coming to my mind...???

[@juandeag5550]

La Marseille coming closer

[@tonywalters7298]

"Boy have you heard about the golden rule? He who has the gold; makes the rules"

[@deenil]

I think that the estate tax policy is a bad one. Beyond a certain cap, you should have to pay taxes. If someone leaves two or three homes to another person, is it a tragedy that they can either sell stock or other assets and keep both, or sell one house and keep the other? Because if the rule is that regardless of any value cap or amount, that any inheritance is untaxable, that's just stupid. My parent leaving me or their spouse a 400k house, for example, is a little different than 2 or 3 million dollar properties.

[@thesuperbasearmor812]

There is a estate tax after death already... There is ways around it (to long to write but it is a lot of lawyer fees) to my memory it's 40 % in differing categories... Also why should you have to be double taxed. The money given to family heirs has presumably all ready BEEN taxed why should the government tax all facets of life all the time? Your taxed all through your life. Why even in death must you be taxed. The reason you don't like rich getting to allocate their money is that you most likely view rich as being immoral automatically. Anyways all a absolute death inheritance(Congress will not stop the loopholes because they are using them also BTW) if you did stop the loopholes. Then why would you ... You know save money and invest it? The objective in life would be to spend every penny before you die and then get onto warfare if you missfactor the timing of your life.

[@Ushio01]

Inheritance tax is wrong the person paid taxes to get that original wealth so it's double dipping. Make the taxes higher ln earnings when the person is alive not punish them for providing for descendance.

[@krombopulos_michael]

@@Ushio01 Yeah they paid, but the person actually getting the asset did not. There's no reason you should be able to make a huge amount of money (which you are if you get a free house) and pay nothing on it

[@krombopulos_michael]

@@thesuperbasearmor812 no, it's because entrenched wealth is bad. If you want to be wealthy, create value, just having parents who were rich is not a good reason.

[@Ushio01]

@@krombopulos_michael People work hard to make lives easier for their children and grandchildren why should the government be able to take that wealth when tax has already been paid on the original earning of that wealth. To redistribute it to others? why can't they do what you just said? "If you want to be wealthy, create value". Why should they get to live off my work at the expense of my descendants?

[@georgeofhamilton]

I’m waiting for the video in which you start using clips from “Tenet,” which has some really prominent depictions of billionaires’ lifestyle and morality.

[@Sharpshooter649]

Adam Ruins Everything also mentioned an important one: Rich people donate $5 art pieces that they have appraised themselves for $500,000 so when they claim the donation deduction, they can just deduct $500,000 in taxes

[@Rizhiy13]

Stepped up basis is the stupidest shit ever. What possible justification is there for it in the tax code? It doesn't make sense even for ordinary people.

[@MonaLisaHasNoEyebrows]

It feels weird to point this out on this channel but we all realize that unrealized market gains aren’t the same as putting actual money into the bank right?

[@Articulate99]

Always interesting, thank you.

[@disgruntledtaxpayr]

an extremely unhinged move to put a better help ad in a video about doing questionable things to a few dollars

[@aakashpatel885]

I appreciate the honesty: “it made for a catchier title”

[@ITRIEDEL]

Aside from the last one, the rest aren’t loop holes they’re just strategies. Same tax strategies you and I use when we go to H&R Block or log into turbo tax. You minimize your tax liabilities as much as possible or maximize your return. And as far as paying taxes on your paper assets, keep that in mind when you own a home and it goes up 20% in value one year and you pay capital gains tax on an arbitrary number

[@ahwleung]

The most ironic part of this statement is that we literally already do so in the form of property taxes. The wealth tax you're arguing against is on unrealized gains on the top .01% with net worths of >$100M. You and I will never pay a cent of extra taxes on unrealozed gains.

[@ITRIEDEL]

@@ahwleung doesn’t matter. You create a tax code that is fair for all. Whether you’re poor or extremely wealthy. Also, you have to define wealthy at a point. If your dream comes true and we tax the super wealthy differently than others today, in 5 years we’ll just adjust the bar and continue to do so until having a single family home and a car is considered wealthy. Just make it fair for everyone. It’s not complicated.

[@coopsnz1]

@@ITRIEDEL then you have communism when everyone poorer

[@fedyx1544]

​@@ITRIEDEL that makes no sense at all. It is absolutely reasonable to make it so different rules are applied to different levels of wealth and there is no indication it would lead to a slippery slope. In general, 99.9 of slippery slope arguments are bs.

[@ITRIEDEL]

@@fedyx1544 that’s erroneous. The bar continues to move as far as what is poverty and what is wealthy. Yesterdays wealthy is todays poverty. The bar will continue to move in addition more companies will find it more cost effective to move their HQ’s overseas. Saving 100,000 a year doesn’t make sense. Saving 1,000,000+ a year does.

[@Xavierlifts]

You can’t be mad at the rich people for not paying, they’re taking advantage of the system that they are given, if you’re going to be upset it should be with the people who make the system, but we always see the blame get put on the wealthy

[@SC-gs8dc]

That makes sense if the rich people aren't predominantly the ones making up the system. Most things I've read indicate it is the rich making up the system which is why the blame tends to get put on the wealthy. It's not to say all wealthy people do so (or that they only act selfishly) or that there's never someone poor who drives decisions, but most people believe the correlation to wealth to be quite high -- if there are studies that disprove this expected correlation, let me know.

[@blacklyfe5543]

They created the system

[@blacklyfe5543]

​@S C they do make up the system that's why they're rich

[@AbdirahmanIdris-ku9xm]

They aren't given the system. They wrote it by buying out politicians and they maintain the system by buying out politicians. Nothing to do with them being rich. I have no problem with that. I have a problem with them being evil

[@razabadass]

Thanks

[@edwardv4546]

I had to rewind this like 30 times. This was very eye opening. Thanks bro.

[@natange1436]

Video starts at 3:06

[@georgeofhamilton]

With all due respect, the sponsor advertisement ends at 3:05. It’s funny how that’s also the most-replayed part of the video.

[@MalluStyleMultiMedia]

Thanks to my one rental property, I’m able to write off some stuff .. I’m still learning

[@cooljonathan]

0:47, tables says "Total Axes Paid"

[@noone-um4hk]

For the average middle class, get some rental properties if you can. When I was in the military I would buy a house with 0 down using the VA loan and then rent it out when I moved, ended up with 3 rentals. You can depreciate your rentals over 27 years and write off any expenses. You end up with decent profit that is virtually un-taxed.

[@edheldude]

Good job investing!

[@bigjohnson7415]

Good for you. However not everyone is able or inclined to be a slumlord. Bet you have plenty of "Bad Tenent" or expensive repair stories to go along with your success. Just one Bad Tenent, who squats, pays no rent for a year while you try to evict them, and when you finally do, find your house torn up. That would sour anyone on doing that.

[@sprinkle61]

@@bigjohnson7415 Landlord =/= slumlord. Also there is this thing called a credit report, and smart landlords NEVER rent to people that have bad credit reports, and the kind of tenant that would destroy a property or not pay rent will have a terrible credit report, because bad people tend to do bad things a lot, and a credit report will show that, as will past references and income history.

[@bigjohnson7415]

@@sprinkle61 True, but I think there are also anti descrimination statutes that can be applied to property rentals. You can deny an applicant, but get a nasty, frivolous lawsuit slapped on you.

[@noone-um4hk]

@@bigjohnson7415 all my rentals are previous homes of mine. I took good care of them and renovated them before renting. I mainly rent to other servicemembers who would rather live off base in a single family home. Also, I have never had a missed rent check or problems with damage, it turns out chances of that happening is slim when you provide good housing to respectable people. But, go ahead and keep making assumptions about shit you have no idea about.

[@jackiechan3509]

When they ask you for light tell them go find your own light

[@theluckshow9617]

That bed music for the better help ad is jammin.

[@Tycy2014]

the blond lady at 0:24 literally smiled when Obama said the rich have the lowest taxes in 50 years 😆.way to show what team your on 🤣

[@Lawrence330]

Married property is (often) considered "shared property." Why would a surviving spouse ever pay an inheritance tax? The tax would imply that spouses are inheriting their deceased partner's possessions, rather than acquiring full ownership of that which they previously held only 50% share. You could *maybe* argue that they should pay tax on acquiring 1/2 of the estate, BUT THEY DID. They lost a fricken spouse, that's a pretty big penalty for some people. Children, aunts/uncles, third cousins, etc, yeah, inheritance tax on the windfall. These relations often didn't build the estate and shouldn't necessarily be privy to a tax free windfall. Rather than taxing the estate based on its size, perhaps tax the distributions based on a lesser threshold? Tax inheritances per person greater than $250,000 or something? That should cover all but the most well-to-do in the first place and present a much narrower loophole. You can still dodge all of the taxes on a very large estate by spreading the wealth around a little more, which is the goal, after all.

[@TanakaMatsumoto]

How things should be vs how things are is way too big of a gap it's so bullshit, I'm wondering if everyone in the past who pushed through half of this crap through the system were blind or actually retarded, must've been or they stood to benefit greatly because of it.... It's gotta be one of those...

[@squa_81]

5:06 Que fait jean dujardin ici ? Comment ? Well at least the role suits him

[@11Superkevin]

DO NOT USE BETTER HELP! These are not reputable therapist & your information will be sold. Nothing keeps your information confidential & it will be sold to third parties.

[@moneytalks7142]

Yea, the loans against stock should count as income at some point. But no way should unrealized capital gains be taxed.

[@bolt5564]

100% agree.

[@Simonjose7258]

You don't pay taxes on a Personal Loan. You'll just have to pay Taxes on the dividends paid by your Portfolio. Either way.

[@DUDIDUAN]

Instead of punitive tax policy, why don't we have some reward based tax policy. For example, recording the lifetime tax paid and give you a government service priority membership or tax reward based on how much tax you have paid(using the cost of IRS or tax department). If designed carefully, this should be a more efficient system and makes people happier.

[@Angela-g1q4q]

Own nothing but control everything

[@tonycrabtree3416]

Poor people that vote taxes on themselves for stadiums to get a sports team is absolutely hilarious to me.

[@rossgueller8]

Ok, that is an amazing video, really eye opening and clear. But us, as individuals, what can we do? The little man can't do a thing against these people that control what we eat, watch and consume. Even if you were a State Tax Inspector, a Federal Officer or a 25-experienced judge, it would be faily impossible to reduce economic inequality. I'm making a call for optimistic thoughts, because it's difficult to find hope these days.

[@100AcreWoodz1]

Unfortunately. Not much we can do besides being good worker ants for our oligarch overlords. Best we could do is vote in people who may be non corrupt. Although that seems unlikely

[@jackduane5555]

Inequality is not inherently bad

[@jackduane5555]

@@100AcreWoodz1 you could stop being a whiner

[@forever_noir_2155]

Become a communist. Join an organization. Educate yourself on the dictatorship of the proletariat and work towards burning the constitution lol

[@rossgueller8]

@@jackduane5555 Well it is not as bad as a molecule of cyanide is for your body. But when you come to this monopoly-scenario where even your underpants have the Amazon logo on it, you start thinking if there is life outside dystopia. And btw, what about stopping calling people whiner and look whatever place is not your navel

[@brianfong5711]

0:46 Total Axes Paid Can you find the typo?

[@dogetaxes8893]

People forget that the rich will always hire the most clever accountants who will find every way for them to pay less tax, even if you fixed up some of these loopholes these people would just find smarter ways around it. Mathews law/Pareto principle will always find a way to manifest.

[@LoveNPeace369]

it’s a lease from the company!

[@FinancialShinanigan]

I also like how billionaires donate to charities their families run and since there's no accountability, they can spend it however they want.

[@AbdirahmanIdris-ku9xm]

Exactly. The Bill Gates Foundation. Donating money to yourself and changing the name of the account actually changes nothing.

[@ryandoesthesports]

The chart at 00:47 gives a bad example of real tax rate. Anyone who owns stock does not pay a tax on the increase in value until that gain is realized (sold). Hence, the value of your stock is not indicative of income. You would not want to be taxed on money you have not realized yourself. They are taxed on their income earnings. The *real* tax rate of .10 percent is simply not true when you consider you are not subjected to tax on unrealized earnings anyways.

[@miguelgonzalez6213]

If we were to compare the wastefulness of what the wealthy spend THEIR money on versus what the federal and state level governments spend OUR money on, I honestly don't believe there is an actual comparison. What the US needs is for the government to get out of the business of business and to focus on what the Constitution limits them to do. If we got back to that level, then there would be no reason for us to tax the common citizen and businesses the way the US does. Cut the waste and the tax rates should shrink to the point more people wouldn't need loopholes for the wealthy or credits for those who aren't trying to be rich.

[@leoe.5046]

The woman that sold her company at such a 'discount' definitely got pretty creative

[@bengagnon2894]

Parasitic was more the word I was looking for.

[@kingpest13]

Better help was caught sharing data and your conversation with your therapist.

[@richardfecteau4490]

Your political system working as intended.

[@SergeantSarge]

Please reconsider BH sponsorship.

[@HelicopterShownUp]

"Total axes paid" in the chart at the start

[@connormcpartland9625]

"Total Axes Paid" lmao if only it were that easy

[@JackClayton123]

When I made real money, different universe than these people, and never owed income tax, people would ask me how I did it. When I said “give a lot to charity”, it wasn’t the answer they were looking for. I just figured, I’m still paying the tax equivalent, it’s just that I’m saying where it goes. Different universe than these people v

[@mukkaar]

Really the huge problem is how being poor, or even just not decently well off is just so much more expensive than being rich. And I would argue that inheriting huge amount of wealth kinda goes against our individualistic capitalist system. But yeah, I don't care if people are rich and have yachts, but they need to pay taxes like rest of us and I'm not big on accumulation of undeserved wealth. I mean sure, despite everything shady with Facebook, I would say mark zuck deserves his wealth, but I don't think his children or spouse does. Now I'm not saying taxes for doing business should be increased, though obviously this should be decided on case by case basis. I'm just saying that loopholes that allow for tax avoidance should be closed, or at least implemented differently when it comes to huge amounts of money/people with super high net worth.

[@MalluStyleMultiMedia]

Hmm interesting

[@2011blueman]

In what universe is a sports team a depreciating asset?

[@DonCherrysDream]

Up until 2015, the NFL was officially classified as a "non profit organization"

[@AuratticStride]

I'm still confused about the process of getting loans instead of selling shares. Don't you have to pay back the loans on an ongoing basis, which would require you to sell shares thus getting you income? Is there a way to pay back the loan without taxable income?

[@Anonymous-jy5ew]

Your required to tell the irs incomes, but not necessarily expenditures. You voluntarily give up expenditures to lower your taxes from income. But if one of those expenditures was a loan, well, you don’t have to tel them your paying a loan.

[@AuratticStride]

@@Anonymous-jy5ew but don't you at some point need income to pay back the loan?

[@BikeHelmetMk2]

@@AuratticStride Why would you pay it back? It is becoming a smaller and smaller part of their total assets, as their assets grow. They can just ignore it and eventually it will shivel away. (Be such a small % that it doesn't matter.)

[@AuratticStride]

@@BikeHelmetMk2 So they just don't pay back the loans? And the banks don't have a problem with that?

[@andrewdemayo945]

You don't need to necessary pay back the loans on an ongoing basis - now, obviously, the bank will want their money back eventually, but you could agree to have interest added to the loan value. Which does mean a greater amount to be paid back in the future, yes, but..... as long as the bank is confident you will be able to pay it, that is not necessarily a problem for them. For the US, at least, as mentioned in the video, when you die, shares are 'stepped up' to their current value for your inheritors, so if the inheritor then sells them, they will not have to pay capital gains on those sold shares. Which means that if you borrow (posting enough collateral, such as shares, to ensure the bank you are credit-worthy), and have the interest added to the loan as you go, and then you die, your inheritor will be able to pay back the loan with money from selling the shares which they would not have to have paid capital gains tax on any increase in price that occurred in your life-time. So it can be very advantageous to use the Buy-Borrow-Die from a tax perspective....

[@granttmoney8110]

Apply now to get a grant is free and no stress.all you need do is to provide the necessary documents.

[@dancheng3014]

Any policy that could help poor people, could also help rich people at a greater scale. That's all there is to it. If it benefits poor people, it also benefits rich people better. You take that ability away from rich people, you also take that ability away from poor people. All of the 'tricks' that billionaires employ, your local bodega owner/operator probably also employs. Think long and hard before proposing any changing of the rules - because if you think you're hurting rich people with those rule changes, you will probably hurt poor people more.

[@coopsnz1]

Comsumers pay the taxes

[@tchen61]

The tax law is not for riches, every one gets to use the same law, just most people do not take advantage of that. Part of the reason is the scale... if someone rich can save 1% tax, it may translate to millions to dollars, which means it is worth their while to employ accounts to take advantage of the law, but for regular joe, 1% may translate to a cup of coffee, hardly worth the time to do it

[@Viviko]

Very well said.

[@zoom2d885]

So how do they pay for the loans with stock as collateral? Wouldn't they need to sell stock to pay? Which in turn should trigger capital gains

[@renowinter8022]

They just give/transfer the share ownership to bank.

[@TheMountainBeyondTheWoods]

@@renowinter8022 what? What are you talking aboutt? No they don't give their stock to the bank.

[@wallsofa]

The key is, they don't pay the loans. Assets are taken from their estate after they die to pay the outstanding loans.

[@renowinter8022]

@@TheMountainBeyondTheWoods I mean they pay the loan by transfer the share ownership. They don't need to sell it.

[@bs6788]

@@renowinter8022 I cannot image share transfers with the purpose of loan repayment to not qualify as a de facto sale under US tax law. In Germany that would be taxable. Anyone to shed a light on how loan repayment is (really) structured?

[@nonyadamnbusiness9887]

Another video about how we're all victims. The top twenty percent of income earners pay about 80% of all income tax, which is how it should be. We don't tax wealth, which is how it should be. Singling out billionaires as a group is just like singling out Jews as a group. It's reprehensible. We don't have a tax revenue problem anyway. We have a politicians pissing away our money and our children's money on nothing problem. When you're on a bridge to nowhere, it doesn't matter who pays the toll.

[@samkawer]

Reform the tax code

[@bachelorgamer8001]

I like the music added please make that I thing

[@garyjust.johnson1436]

Have you dome any movie reviews where you look at the accuracy from a banking perspective? The other guys, from 2010 and The informant from 2009 come to mind.

[@ay5960]

If they are taking loans which are tax free then don't they pay back the loan? Don't they have to sell their assets to pay their monthly loans? If so they pay tax when they are selling their assets.

[@luisoncpp]

Thanks for explaining this. I have always heard about this issue but the lack of a coherent explanation made me skeptic about it. Btw, does this mean that it's possible to deduct from taxes the debt payments? I thought the only deductible part was the interests.

[@lupusdei0819]

Yet top1% still pay 42% of americas tax

[@javierjp8549]

7:33 just great

[@rolleddebacle7391]

This guy. And the guy from wisecrack sound alike.

[@victoriancu7358]

Is the government really going to use the money better than billionaires? Middle and lower class should pay 5-10% in taxes while they should run a flat 20% on the 1%.

[@Canadish]

I would imagine so, the billionaires can only spend so much. Even at the top end of the luxury scale, you only need so much food, so many pairs of socks etc. The rest is just going into investments and assets that inflate prices out of normal peoples reach (see housing crisis) The Government, due to its unoptimamal organisational structure and lack of incentives, is going to waste a ton of resource yes, but the majority of cash still gets through and will go directly into things that impact wider public good (education, health care, defence, maintenance of infrastructure etc). So again, I think the answer is yes here, with the caviet that Governments are admittedly inefficient and rife with corruption, but every dollar they spend goes further than it does sat invested in real terms. They don't make the money grow, but they support people who then go out and are able to generate the real wealth underpinning the currency.

[@bradynovak423]

“True tax rate” isn’t even remotely honest. This is comparing their taxes paid against their unrealized capital gains, which is extremely misleading…

[@jackduane5555]

Thank you. Glad someone gets it

[@luisoncpp]

Yep, that's missleading, but they still pay less taxes that they should. It would be all well and good if they only paid income tax for their realized gains with a normal tax rate, however the video explain more questionable exploits that they do to reduce taxes.

[@bigjohnson7415]

I think this is why people say Musk paid a boatload of Tax's last year, when he was forced to exercise Stock Options, or lose them. He paid Billions, but his Tax RATE was at most 20 percent, not the 36 percent he would have been subject to IF it was considered income. Just my opinion. And it was reported he paid no to little for 10 years prior.

[@kushyglowy8409]

Interesting

[@FirstnameLastname-cw8ok]

Better help is a shifty therapy service. Get a real therapist or go to the gym.

[@estebanb7166]

Try meth

[@txsphere]

So buy borrow die. Cool try are taking a loan so as not sell an asset and pay tax, but eventually they have to repay the loan and that means have income, which is taxed. So they are still paying tax. If the bank forgives the loan, the amount is considered income and taxable.

[@rightwingsafetysquad9872]

There are no loopholes in the tax code. Everything is there on purpose.

[@Wasnt-1]

people's ignorance of this matter is what makes people pic $1 million instantly instead of taking hundreds of billions in 10 years they're not accustomed to taking loans whilst actually earning more than that is actually a great way to become wealthy loan are billionaire's friend it's basically an unlimited free money loophole for them to use

[@MaltoonYezi]

04:40 song name?

[@nicholasdean3467]

Couldn't some billionaire marry their kids? Since then there is 0 inheritance tax?

[@RuslanKD]

Since when did wealth growth and income become the same thing?

[@sprinkle61]

Since small tax numbers are politically useful for rich hating channels like this one.

[@Jkauppa]

none should pay to be a slave, what a double disgrace

[@Jkauppa]

not a freedom

[@jackduane5555]

Lol what

[@Jkauppa]

@@jackduane5555 just a prank bro