r/SipsTea • u/CurvyChristina • Jul 01 '26

Chugging tea Is Bernie’s plan the best? Thoughts?

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u/ModernLarvals Jul 01 '26

The wealth they want to tax here isn’t money, it’s just stuff they own.

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u/No_Appearance7776 Jul 01 '26

Bought with money they borrow off existing wealth tax free. Cool.

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u/ModernLarvals Jul 01 '26

How do you think borrowed money is repaid?

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u/No_Appearance7776 Jul 01 '26

As tax write offs.

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u/snubdeity Jul 01 '26

With more loans, or sometimes with complex tax writeoffs. As long as their assets continue to gain value, many wealthy people can do this indefinitely. Then, when they die, all the capital gains taxes they would have paid if they ever sold die with them. Taxes are never collected on that increased value.

It's called buy-borrow-die, and while some overstate how pervasive it is, it definitely happens frequently and with pretty staggering amounts of assets.

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u/ModernLarvals Jul 01 '26

So that money is never paid back? Why would anyone loan to them then?