Debt Is Tax Free 😱

[charleswebber]

Of course is tax-free they get you on the interest

[hewlikehew]

To any young people who just watched this

He's leaving out the fact that for this to work, the assets you buy with your borrowed money have to be successful in providing you with current or future economic benefits which are not guaranteed.

If the assets you buy are not successful then guess what? You have to pay back the money you borrowed plus interest on top using your own money that you are taxed on 🙃

[leanator]

As an accounting researcher, this was painful to watch

[Madmonkeyitch]

“Houses” are an asset, not a “liability”. Investment, not expense.

[roopanshsehgal]

Rotation of money is taxed, not creation of money.

[darkplacescouk]

Depends on you perspective. Interest is a tax on borrowing.

[bobtailsquid]

You pay tax on the money you need to pay that borrowed money

[paulmorphy]

Debt is tax free but it isnt cost free.

[supremelucks]

Bruh what do your telling me a house isn’t an asset now

[YD-ndbe]

… you got taxed when spending the money, if you got taxed when borrowing the money, you will got taxed twice…

[i.katsantonis]

If borrowed money was taxed, then when you used that same borrowed money to buy a car, with tax, you'd have paid tax twice.

[tommers]

It's always bothered me that he doesn't properly differentiate between assets and liabilities.

[jocaingles]

In my country, you have to pay taxes in order to borrow money.
Come to think of it, it's actually a good policy

[n.b.p.davenport]

In the long run you will pay taxes on that money

[mrnmrn]

Banks charge huge interest on money people borrow from them.

[ericallen]

This guy is so disconnected from the real prople money problems.

[arcadan]

Debt is tax free, but not interest free.

[tylerhughes]

1 assets have to be profitable
2 the more likely an asset is profitable the more expensive the assets going to be
3 banks will not let you borrow the amount of money necessary to purchase a profitable asset on credit alone and will require collateral
4 houses most often are not liabilities and do become assets in the long run

[OrlandoSiciliano]

It's tax free? Inflation is the hidden tax. Borrowing favours first in line. Fractional reserve lending creates new money increasing the money supply that decreases the money supply.
Lenders cash in on the interest and fees associated with the loan.
This method depends on the borrower's ability to secure this new money with collateral obligations using their assets. So the more your assets increase in value the more you get to borrow. The trick is to make profit with the borrowed money to pay back the loan plus interest and fees thereby increasing the value of your total asset portfolio.

[CaptainInsano-govo]

I'm on SSDI disability and my bank won't loan me any amount of money. This guy isn't correct at all