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Rich People 2020 to Now
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Tax Avoidance Scams Miscellany
Too Much Leverage Tends to Unwind
College Debt (Student Loans) 2016 to Now

how the wealthy use debt to screw everyone else      web

authorJillian Berman

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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