eli5 what do people mean when they say billionaires dont get taxed
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It’s mostly about not understanding how taxes work. There are very few if any that become billionaires by earning an income. The vast majority get to that status by owning assets, and the appreciation of those assets. You largely pay taxes on realised profits or regular income, of which billionaires have very little and thus pay an appropriate amount. Having a large amount of assets also allows them to take full advantage of any tax code to limit their tax liability.
Exactly that.
First, if you have enough money you have _many_ options for _perfectly legal_ tax avoidance. You can move income around between companies, locations, etc so you’re not taxed as much, you can get tax credits for all kinds of things, and many, many more methods.
Even before that, a lot of the ways really rich people make more money are taxed at significantly lower rates than “regular” income. Capital gains are one example of this (so making money in the stock market).
Again, this is all perfectly legal.
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