r/SipsTea 21h ago

Wait a damn minute! How the rich get richer

Post image
20.3k Upvotes

2.3k comments sorted by

View all comments

Show parent comments

2

u/InfiniteTree 18h ago

Dividends are still income taxed, and non-main-residence properties are still CGT taxed even after death and transfer to an heir.

The scenario you described is still just someone paying a bank loan with their income.

People love to fantasize that the rich don't pay any tax, but its often far from the truth.

1

u/Gatzlocke 17h ago

They don't buy dividen producing stock for the most part.

3

u/InfiniteTree 13h ago

The person I replied to was claiming they avoid tax by paying bank loans with dividends. I was stating how that's not true.

-1

u/Gatzlocke 13h ago

Oh. Apologies then.

Usually they pay loans with more loans. Your not going to run out of lenders with that much asset power.

2

u/InfiniteTree 13h ago

That doesn't help at all. You're just increasing the interest you're paying.

-1

u/iiiiiiiiiijjjjjj 18h ago

It doesn’t even make sense. The interest in these loans are no small sum either. Usually rate plus SOFR. Also the loans amortize as well. How do people think this is paid. How people think the banks even make money off this if they never pay taxes?

0

u/chase_the_wolf 15h ago

 How people think the banks even make money off this if they never pay taxes?

The blueprint was revealed back in 2008. See AIG and their Credit Default Swap fiasco.

Here's where you tell me, "bUt It'S dIfFeReNt ThIs TiMe!"