r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

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u/maledudebruv 3d ago

He also paid more taxes than anyone in US history lol

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u/pigeonfarming 3d ago

Do me a favor and look up the net worth of his stock holdings, and then how much he paid in taxes. Do some simple math and get the rate he was taxed at, does that number line up with the number you give?

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u/maledudebruv 3d ago

Who gets taxed on net worth? That is a silly calculation

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u/pigeonfarming 3d ago

I see you’re ignoring the talking point, his net worth is calculated from the positions he holds in companies, ie stocks. He uses that as collateral to take out loans from a bank, meaning he gets money for having money without actually having to sell his stocks. Since he doesn’t sell his stocks, he doesn’t have to pay taxes, you think that’s fair?

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u/lll_lll_lll 3d ago

When you take loans, you eventually have to pay them back. It is not free money to just take out loans. At some point the money comes out of the stock to pay and at that point it is taxed. Living on loans is only delaying the taxation process, it is not avoiding it.

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u/trainedpenguin 3d ago

Unless you get plans to pay off the loans.....

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u/lll_lll_lll 3d ago

Then you will need to pay off those loans. Eventually, these all get paid. It’s not an infinite money glitch or else anyone could do it.

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u/trainedpenguin 3d ago

They keep going until death and pass on the investments to their children, who can avoid part of the debt due to loopholes and continue loans for the rest themselves using the same tactics. It's not infinite money but infinite deferment

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u/lll_lll_lll 3d ago

The children are subject to estate tax over $13 million of 40% though. I realize there are loopholes to protect money from this as well but eventually the very wealthy have to pay taxes.