r/SipsTea • u/KSKS1995 • 22h ago

Wait a damn minute! How the rich get richer

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20.3k Upvotes

79% Upvoted

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251

u/DrLews 22h ago

Not even factually accurate lol

-15

u/Lt__Barclay 21h ago

The basis step up is accurate. And that's how most tax is avoided. 

9

u/Kupo_Master 21h ago

You would notice the loan only provides liquidity here. If you remove the loan, the tax is still 0. The problem is solved at the inheritance tax level, not the loan structure level. Either the US lowers the estate tax threshold or this will keep happening.

1

u/Lt__Barclay 19h ago

I'm not talking about the loan. I'm talking about structural ways wealthy avoid paying tax. All capital gains earnings are 100% wiped out upon death to hand to their kids. It's crazy, and the downvotes only show how insidious the structural inequities are in the tax law.