How the rich avoid paying taxes

Capital gains taxes, explained.

The richest in America don't make money like most Americans. Most people pay income taxes from a regular job. But many in the top 1% make money off their investments, like stocks, and pay capital gains taxes. While normal income has a maximum tax rate of 37%, long-term capital gains tops out at just 20%. Changing that rate, and some loopholes that benefit the wealthiest, is seen as one way to tax the rich.

Read more about how the richest avoid paying income taxes from Vox:

And an investigation from ProPublica:

For more information about Elon Musk's loans:

[Vox]

If you want to learn more about the US tax system, check out ProPublica's investigation into the wealth and taxes of some of the richest people in the country. They obtained IRS records of billionaires like Jeff Bezos and Elon Musk that specifically show how the rich get away with paying little to no taxes.

[sayanchakraborty]

“The fact is, if you're a billionaire, you don't need any income.”

Biggest quote of the century, I guess!

[nover]

"How the rich avoid paying taxes"

The state allows it, simple!

[CHANCEY-hd]

I just want to invest in tax advantaged accounts. I just saved up $100, 000 this last quarter, and i plan to invest in the stock market

[Riggsnic_co]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[Housewarmin]

Most people are taught that "you only need a good job to become rich". These billionaires are operating on a whole other playbook that many don't even know exists.

[mybakwaaschannel]

"if you are homeless, just buy a house" that woman makes so much more sense now!

[NicholasBall]

The most important thing that should be on everyone mind currently should be to invest in different sources of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in various stocks, Gold, silver and digital currencies

[PremSteve-ygde]

These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?

[omarfarique]

Expectation: Tax money is used to build infrastructures and invested in healthcare.

Reality: Used to bail out big banks and used to finance wars.

[scottabc]

Remember this when hearing about execs 'donating' their salary or their salary is 'just $1' - its just another PR move.

[JosephWen]

I won't argue whether capital gains should be taxed at the same rate as income tax. But, should you be taxed on "paper gains"?
The stock market is there for everyone to participate in. But it does require "delayed gratification" to accumulate the money to invest.

[signordoge]

Warren Buffett is the embodiment of 'hate the game, not the player'. What a legend.

[DiRECs]

I think a more correct title would be "One way the rich avoid paying taxes"

[crookedh]

Why don’t they teach this in school ?
Answer: We need busy worker bees 🐝

[CJ-wright]

I'll suggest that because of the crash, choosing the appropriate stock won't be too simple. Jim Cramer mentioned that despite the crash, there are still tremendous chances, and I saw someone mention making $250k from approximately $110k since the crash. How do I generate returns like these? Nate

[CoreyLloydo]

I just discovered your channel through this video. Case studies are extremely beneficial and I hope to see more in the future! Creating wealth includes developing habits, such as setting aside money on a regular basis for smart investments.

[SaschaHusenbeth]

When the richest people point out the flaws in the system that makes them get richer and richer, you know that system is fundamentally flawed.

[dakfahnirqrh]

The simplest way to describe this is "do not liquidate."

[talented]

The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??