They pay very low interest on the loans, and they only pay taxes on the stock if they sell (and realize the gains). If they die, their heirs don’t pay taxes because of the step up basis rule.
The interest is very low, since it’s guaranteed by assets. The cost of the interest is less than taxes. So, as soon as one loan expires you take out another. You keep taking them out until you die, then your estate pays the loans back out of the estate and then the rest passes on to your offspring. If you want to know more, there isn’t more to know really but you can Google it. This buy-borrow-die scheme wasn’t made public until the last few years and details are still scant.
In many historical societies including ancient Christian, Jewish, and Islamic societies, usury meant the charging of interest of any kind, and was considered wrong, or was made illegal
Lpt: you can use the Bible as an excuse to not push credit cards on customers in retail.
Deuteronomy 23:19 is quite clear when it says “You are not to charge interest to your countrymen: interest on money, food, or anything that may be loaned on interest"
Banks charge interest on credit cards.
If I push a credit card, that is the same as me pushing interest on my fellow countryman, and as I am a devout Christian (lmao no, I have donated money to TST to help pay for their clinics) I cannot in good conscience offer a credit card to anyone.
So far no retail manager has pushed back on it. Probably because they know I’m full of shit but if pressed I absolutely will make it a problem for them, and since I’m solidly in the Bible belt of the US (send help please), nobody wants to chance a court case.
Interest payments from money sitting in a bank account are basically a rounding error on most rich people’s balance sheets. By far the most wealth they accumulate comes from the growth of stocks they own.
Yes, but that wealth will tie one way or another into the banking system (for example a rich person could take an ultra low-interest loan to invest it), which is fueled by money extracted from working class people by restricting necessities of life such as housing and education. I mean banks certainly aren’t building up their wealth by giving loans to the rich essentially for free. It’s no exaggeration to say that the whole system runs on human suffering with the purpose of making the rich richer.
I think you’re missing that someone gave them money at some point, usually their parents.
Yeah and then they evade taxes
That’s usually how they evade taxes.
Are they successful or corrupt/nepo baby?
The right most one there is a problem. Feels like people shouldn’t be allowed to do that, but I don’t know the best mechanism to make it illegal.
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They pay very low interest on the loans, and they only pay taxes on the stock if they sell (and realize the gains). If they die, their heirs don’t pay taxes because of the step up basis rule.
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I’m sure it gets more complicated than that. “Buy borrow die” is a common strategy
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The interest is very low, since it’s guaranteed by assets. The cost of the interest is less than taxes. So, as soon as one loan expires you take out another. You keep taking them out until you die, then your estate pays the loans back out of the estate and then the rest passes on to your offspring. If you want to know more, there isn’t more to know really but you can Google it. This buy-borrow-die scheme wasn’t made public until the last few years and details are still scant.
The whole concept of interest is fucked up and a tool for the rich to extract money from the poor. That should be illegal.
I’m pretty sure it used to be considered bad and sinful
https://en.m.wikipedia.org/wiki/Usury
Lpt: you can use the Bible as an excuse to not push credit cards on customers in retail.
Deuteronomy 23:19 is quite clear when it says “You are not to charge interest to your countrymen: interest on money, food, or anything that may be loaned on interest"
Banks charge interest on credit cards.
If I push a credit card, that is the same as me pushing interest on my fellow countryman, and as I am a devout Christian (lmao no, I have donated money to TST to help pay for their clinics) I cannot in good conscience offer a credit card to anyone.
So far no retail manager has pushed back on it. Probably because they know I’m full of shit but if pressed I absolutely will make it a problem for them, and since I’m solidly in the Bible belt of the US (send help please), nobody wants to chance a court case.
Interest payments from money sitting in a bank account are basically a rounding error on most rich people’s balance sheets. By far the most wealth they accumulate comes from the growth of stocks they own.
Yes, but that wealth will tie one way or another into the banking system (for example a rich person could take an ultra low-interest loan to invest it), which is fueled by money extracted from working class people by restricting necessities of life such as housing and education. I mean banks certainly aren’t building up their wealth by giving loans to the rich essentially for free. It’s no exaggeration to say that the whole system runs on human suffering with the purpose of making the rich richer.
Stocks as compensation are taxed as income.