In Album: Tim smith's Timeline Photos
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phunkejay
First of all, most rich people are not CASH rich, they are ASSET rich. And most of the wealth of their assets is in the form of UNREALIZED CAPITAL GAINS.
Second, there is a difference between being "poor" and being "broke." In Amaerica, most people who are struggling are just broke, not poor. We hav... View More
Tim smith
Billionaires take out loans against their assets (stocks, real estate) to access cash without selling them, avoiding capital gains taxes. By using assets as collateral (pledging) to borrow from banks at low interest rates, they gain tax-free income to fund their lifestyles, often repaying only inter... View More
phunkejay
Duh! That's what I've been saying to you.
However, it's NOT tax-free INCOME. It's LOANS.
When you finance a new car, you're taking out a LOAN to buy an asset.
Your LOAN is not INCOME.
Should you pay tax (above and beyond the sales tax) on the amount of the loan as if it's income in your wallet?... View More