Capital gains are only taxed when they’re realized. They don’t pay taxes when the value of their portfolios go up, just when they cash out. So instead they borrow against those portfolios and pay zero taxes.
Estate taxes are supposed to close this loop.
edit: Pokemon Cards are my go to analogy for capital gains. You can’t tax someone on how much their pokemon card collection is potentially worth on ebay. You can only tax the money they made from the sale.
It depends on how they paid themselves.
Most techfuckwits only get pain $1 a year as salary and the rest is made up with stock options or executive allowances. When they do cash out stock it will be taxes at a mixed rate because some will be sold as personal shares, others will be sold as part of a family trust and distributed in a way to minimise tax obligations.
Neither. If you don’t know how to not pay taxes, you aren’t going to be a billionaire.
No
Depends on how they store their money and what the income source is. The top 1% pays on average 40% of total federal income tax collected, in the US. Bottom 50% pays about 3% and the middle gets fucked up the ass for the other 57%. No idea how it works anywhere else.
The top 1% in the US is about 3.4 million people, but only about a thousand of them are billionaires. I don’t think you can generalize from the rest of the group.
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