The article discusses the loophole used by America's ultra-rich to avoid taxes, known as "Buy, Borrow, Die." This strategy involves three main steps: acquiring assets instead of earning taxable wages, borrowing against those assets to access cash without triggering tax liabilities, and passing on the remaining wealth to heirs untaxed. It highlights how this loophole allows billionaires to build substantial wealth while minimizing tax obligations, emphasizing that current tax reforms often do not address these strategies, thus perpetuating economic inequality.
The technique known as 'Buy, Borrow, Die' enables billionaires to accumulate wealth while preserving it largely untaxed, leading to significant inequalities in the tax system.
Superrich individuals amass fortunes through asset ownership, which only get taxed upon sale, while borrowing against those assets allows them to access funds without tax implications.
The average American's income is taxable upon earning, contrasting sharply with the ultra-wealthy who avoid taxes through strategic asset management and borrowing.
Progressive tax reforms often fail to address significant loopholes used by the wealthy, such as the ability to pass on untaxed wealth to heirs.
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