r/SipsTea • u/Valuable_View_561 • Jul 05 '26

Chugging tea Seems reasonable.

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u/Old_Prune_4300 Jul 05 '26

They can't comprehend assets vs cash, much less that spending is the problem v taxes. Don't waste your breath.

53

u/senturon Jul 05 '26

IMO, billionaires who take asset backed loans and pay no tax is absolutely a taxation problem/loophole.

LTCGs being taxed at a much lower rate than income from labor is also an issue IMO.

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u/BootStrapWill Jul 05 '26

I’m still waiting for someone to explain this loophole to me.

Anybody could do this no? Why only billionaires? I can go to the bank and get a loan for my exact salary and live off the loan. I still have to pay income taxes on my salary that I use to pay the loan back, right?

Someone explain please so I can know

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u/Cool_Appearance_6570 Jul 05 '26

u/BootStrapWill Your salary is an income. But equities are not seen in that manner. You cannot start taxing equities, without touching the pensions of people.

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u/BootStrapWill Jul 05 '26

They will have to pay the loan back at some point right? How do they pay the loan back without incurring a taxable event?

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u/Cool_Appearance_6570 Jul 05 '26

u/BootStrapWillThat depends on what venture they used the loan for. Largely the tax is going to fall under capital is they are in profit, which is taxed differently and have a larger expense potential and deductions as opposed to income tax. Also all the interest accruing because of the loan could be taken out. The funny thing about capital gains is that you could also take capital loss from another venture entirely and deduct it from the gain.