How the rich avoid paying taxes

Capital gains taxes, explained. Subscribe to our channel! The richest in America don’t make money like most …


37 thoughts on “How the rich avoid paying taxes”

  1. They didn’t even cover the part where they have capital losses and sell this stocks because the loss is still smaller then taxes they could right off as losses.

  2. While this video's main point is valid, the amount of tax people pay is being severely overstated. They keep mentioning 37% federal tax like anyone is actually paying that much. With the bracketed system, even if you make enough to get into that 37% tax bracket, only the income above that bracket's threshold is being taxed at that amount. Also, people who are making that much are generally good enough with their money that they get enough deductions to put them in a lower bracket. The actual average effective tax rate is somewhere between 14 and 22%, depending on your source.
    With that said, there is no denying that people who work full time for a corporation are the ones with the biggest tax burden, because you can't write off anything work-related if you're on a salary (home office, vehicle, mileage, etc).

  3. How about we just lower everyone's taxes, Cut spending in all sectors, Then optimize current programs. Also the US doesn't have a income problem from its tax payers, It has a spending problem, If we fixed our spending problem we wouldn't need to raise taxes.

  4. I realizd that the secret to making a million is making better investment . I always tell myself you don't need that new Car or that vacation just yet and that mindset helps me make more money invest : ng . For example last year I invested 70k in blue chip stocks and crypt0 s ( with the help of my advisor of course ) and made about 380k , but guess what ? I put it back and traded with her again and now I'm rounding up close to a million . Delayed gratification always pays off

  5. This "unrealized gains tax" idea feels half-baked. If assets go up people would pay this tax, sure. But what if assets go down, eg. 50%. Would US government pay to asset owners the difference to compensate for the loss? If yes, I only imagine how people would start to play on this mechanism to draw money from the government – e.g. manipulating asset prices to continuously drop (and using profits to dampen the market even more).

  6. We need to have a conversation in this county about whether it should even be legal to have a billion dollars or be a trillion dollar company.

  7. You don't need any of this stuff. Get rid of all taxes except sales tax. Make it 20% that would capture any and all dollars when something is purchased. That would get rid of all sorts of problems and simplify business which would create huge economic gains via jobs and supply chain issues being simplified.

  8. Well, aint that brilliant? Instead of requiring government to tax labour less, lets drag others to the same. Another thing is its not the rich people' fault, its the government that for investment is taxing them less and for their budget taxing you more.

  9. It's 23.8%. The net investment income tax is applicable. Also, step up in basis only applies if you are under the estate tax threshold, which all these guys are well over. Additionally, the 37% bracket only applies after you have 600k in ordinary income if you're married filing jointly. Warren buffets secretary is probably not paid 600k. Even if she is making 200-300k, she is still paying an overall rate less than buffets 23.8% cap gains plus the niit.

  10. We have account fees with bank accounts for having lots of transactions and maintenance. Literally, do the same thing with more regulations for stocks and rich people. Do a yearly, monthly, or even weekly "tax" for stock investments for "maintenance"

  11. I don’t pay attention to these rich billionaires. They don’t put a penny in my pocket, so why should I give any attention to them. Just be focused on your own pockets.

  12. Yes tax investing is a great way to decrease investing, less investing would be great economy. The sec that taxing investment come truth I can expect half of the people in the system get laid off.

  13. If everyone started buying fractional shares of stock in companies they like or support instead of $7 daily lattes, after 30 years, they would also have large portfolios of stock "they avoided paying taxes on." Perhaps not billionaires but …

    BTW…If the companies pay dividends, reinvest them in buying more stock to "avoid paying taxes" on that income.

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