Tax The Rich
Terminology
Buy-Borrow-Die: Is used for wealth preservation. The rich buy assets that appreciate in value. Then they borrow low-interest, tax-free loans using those assets as collateral. When they die, heirs receive the assets on a “stepped-up” basis which resets the asset’s value to current market rates and erases all previous capital gains.
Carried Interest: Allows hedge fund and private equity managers to have their income taxed at the 20% long-term capital gains rate rather than the standard 37%.
Real Estate Depreciation: Investors claim “losses” on depreciation of their properties even if those properties are increasing in value (i.e. 1031 Exchanges).
Asset-as-Income Swap: Billionaires take a “nominal” salary and then receive the rest of their compensation as stock options. Pass-Through Entities: Business owners use S-corporations or LLCs to push profits directly to themselves, avoiding double corporate taxation like Section 199A.
Sports Team Ownership: Owners amortize the value of their player contracts as if they were depreciating equipment.
GRATs (Grantor Retained Annuity Trusts): The rich can transfer asset appreciation to heirs entirely tax-free.
Private Placement Life Insurance (PPLI): The ultra wealthy can invest in high-growth assets (like hedge funds) inside a policy where earnings grow tax-free and can be borrowed against without tax.
Charitable Lead & Remainder Trusts: Immediate tax deductions while allowing donor to retain income or control over where the funds go.
Opportunity Zones: Investing capital gains into specifically designated distressed communities; the wealthy can delay or entirely erase taxes on those gains if held long enough.
Converting Hobbies to Businesses: So luxury assets like yachts, private jets, or racehorses are considered “business entities” and can be written off.
Tax-Loss Harvesting: Selling investments that lost value to offset gains from other profits.
Offshore Accounts: Deferral of earnings, bypassing the Foreign Account Tax Compliance Act, transferring patents or trademarks to offshore subsidiaries at low costs then licensing them back to the US parent at a high cost (this generates large tax-deductible expenses), using IRS Form 8832 to make the entity “disappear” for tax purposes. This is legal except if it’s used to hide income (which is tax evasion).
2026 April
2026-04-13 Texas Democrat Representative James Talarico announced he will introduce a bill to close billionaire loopholes. He announced this in front of a private jet hanger to illustrate “one of hundreds of loopholes that billionaires use to avoid paying taxes”. His goal is to target luxury deductions, close “carried interest” loopholes, restrict offshore accounts, end buy-borrow-die practices, and target tax cheats.
https://www.youtube.com/watch?v=uHVMdKGRSbM&list=WL&index=3
https://www.statesman.com/news/politics/state/article/james-talarico-tax-billionaires-22203628.php
2026-04-16 New York Governor Kathy Hochul proposed a new tax on multi-million dollar second homes in New York City. In a press conference she stated, “Those who benefit from the city without living in a full-time capacity should contribute to the cost that it takes to run the city…” This tax would target roughly 13,000 high-rise condos and investment properties, generating at least $500M in revenue annually as Mamdani tries to fill a $5B budget deficit.
https://www.youtube.com/watch?v=6ZAyePIcFzY&list=WL&index=2
https://www.youtube.com/watch?v=zdLW12tcbGc&list=WL&index=1&t=68s
ACCOUNT WALL https://www.nytimes.com/2026/04/14/nyregion/hochul-pied-terre-tax.html