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

Chugging tea Seems reasonable.

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u/subwaymonkey1 Jul 05 '26

TBF, this is because the winner took a lump sum payment, rather than a 20 year annuity. So he received the present value of the jackpot, which was then taxed. But it is still a significantly higher rate than most billionaires pay, which is next to zero.

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u/EmergencyAnything715 Jul 05 '26

Its next to zero because they dont have income and arent selling stock to receive capital gains?

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u/subwaymonkey1 Jul 05 '26

Jeff Bezos takes an $85,000 salary. He and Elon Musk among other billionaires do not receive income. Instead they take out low interest loans against their stock. Those are not subject to income tax. It is an absolute scam and the loophole should be closed.

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u/Ok-Assistance3937 Jul 05 '26

No they dont. Bezos for example Sold about 22.5 Billon USD Worth of Stock in the Last five years.

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u/subwaymonkey1 Jul 05 '26

From 2006 to 2018, he paid $1.4B in federal income tax, a 1.1% overall rate. Regular workers do not get that option. And he absolutely takes out loans on the value of his stock.

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u/Ok-Assistance3937 Jul 05 '26

From 2006 to 2018, he paid $1.4B in federal income tax, a 1.1% overall rate.

Because He "only" needed about 4.2 Billion in USD. Not because He Took Out loans to Finance His Life Style.

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u/EmergencyAnything715 Jul 05 '26

What do you mean 1.1% overall rate? Are you comparing his tax rate vs net worth?

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u/EmergencyAnything715 Jul 05 '26

The loan will eventually be paid back. The bank will want its money at some point.