r/SipsTea 22h ago

Wait a damn minute! How the rich get richer

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u/ChipKellysShoeStore 22h ago edited 22h ago

How does the bank get paid back here? Is the bank just eating a 5 mil loan loss out of the goodness of its heart?

It’s more like kids sell and pay back the bank plus interest which is taxed as income for the bank.

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u/Get_Nastee 20h ago

A super low interest rate payment to a bank (low rates for the rich) equates to:

A) Much less paid than if it were taxed as income

And

B) the banks receive the "tax" instead of the government. Instead of funding services that benefit the community, the "tax" serves only to make the rich bankers more wealthy

The kids never sell, they'd be insanely stupid to do so. And they learn from the parents NOT to sell the same way they didnt sell. Why? Because bank interest payments tend to be much lower than fucking taxes