How the US Tax Code helps the rich get richer at our expense:

[snot]

Madoff wrote a book called "The Second Estate"; in this video she's interviewed by a comedian and explains some of the book's main revelations:

[jmbar2]

1. She was just interviewed on All Things Considered as well

A very timely discussion!

[uponit7771]

2. I have a loved one who can confirm everything in this video

Thr US tax code fir the rich is disgustingly regressive

[Shellback Squid]

3. I don't quite understand when the wealthy borrow against their stocks to avoid tax then how is

the debt paid without withdrawing and how do they avoid interest on that loan?, I'm not an accountant and this baffles me


On edit, I'm really high right now

[Igel]

5. They pay interest.

But the interest is lower because it's secured debt, not like credit card debt that's reliant on your word (and FICO score). More like a mortgage, since there's an asset that can be cashed out, at least in theory, to cover the debt if you can't make payments.

And if you cash out you're subject to paying taxes on the unrealized capital gains on the securities, as well (or, if it's at a loss, you get credit against other capital gains income).

Problem with using securities as collateral is that the debt owner can quickly be found to be "underwater" just like beaucoup house mortgagees were in 2009 if the valuation of the securities drops. Yes, if they can make payments on the debt nobody might care, but not infrequently the lenders will call for additional collateralization to cover the shortfall if it's too big a drop.

[cliffside]

4. Bookmarked for later, thanks. nt