Eli5 How does billionaires evade paying tax and not get arrested?.
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Short answer is they offset their “income” which can be taxed with either taking on debt (not taxed) or receiving dividends instead of income which are taxed differently (and less).
If I own 10 homes totally 1 milllion and they double in value I pay ZERO taxes on that but I am now worth 2 million. Now I can LEVERAGE 1 million of that value and buy 5 more homes and now have 3 million in total Home value and still pay zero tax.
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