Topic: why super rich pay no tax but suggest giving all their wealth away (eventually) - page 3. (Read 344 times)

after another discussion with someone when a topic came up about the super fiat rich
how do they get away with paying no taxes, but then suggest they will eventually give all their wealth away

the simple answer is this
when their business gets revenue, they invest it. and because they are not spending the money personally outside of business purposes, and because they are not selling the investment there is no tax. (investing is a pre-tax event)

then if they need some spending money, they do not sell the investment. instead they ask for a loan using the investment as collateral. and because funds from a loan are not taxable they get to use the money without paying tax

so here is a tip for us bitcoiners who ask how can governments try to tax bitcoin but yet, fiat billlionaires dont get taxed
there needs to be a bitcoin service where people who want to buy bitcoin join(lets call it a credit union or loan company). but instead of "buying" they become investors/funders of loans.
so the service offers loans to bitcoiners that want to cash out. but the bitcoiner doesnt sell the coin. but instead hands the coin over to the service as collateral.
the bitcoiner is then a non-coiner and receives cash. but has not sold the coin but instead received a 'loan' of cash for his collateral. thus no tax. yep loans are not taxable.
obviously never making any repayments the coins become the service investors property. and the deal is done.

buyers have the coin. the ex-bitcoiner gets the cash.

.. sidenote
the only time the rich sell assets is if the asset is performing below its purchase price. so they sell it. and instantly buy it back. (no loss due to sell-buy being equal price/time) but it triggers a "realised value loss" they can put on their financial statement, which they can then use the loss against any tax their main fiat business could not avoid within the business.. to not have to pay tax because the asset loss writes off any fiat business tax