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how the wealthy use debt to screw everyone else      web

webhttps://www.marketwatch.com/story/extra-credit-how-debt-can-mean-a-tax-advantage-for-some-and-jail-time-for-others-11626383631
authorJillian Berman
publicationMarketWatch
date2021-07-17

As long as someone is wealthy enough to live on a percentage of their assets, they never have to sell [and pay income tax on that income].

Instead, they can borrow against those assets at an interest rate that’s much lower than the rate at which the assets will appreciate over time, McCaffery said, and use those funds as spending money. But unlike the wages and salary most people use to pay for living expenses, the borrowing isn’t taxed, so they face a relatively low tax bill.

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