Two primary strategies, “buy-borrow-die” and “buy-hold for decades-sell,” allow the wealthy to avoid paying taxes on investment gains, either entirely or at drastically reduced rates. The “buy-borrow-die” strategy utilizes loans against appreciated assets to avoid income tax until death, while “buy-hold for decades-sell” minimizes the effective tax rate on long-term investments through decades of untaxed compounding. While arguments exist that the wealthy lack the means to pay taxes before selling assets, this is demonstrably false; solutions such as deferring tax payments until sale, with appropriate adjustments for compounding, are readily available. The persistence of these loopholes ultimately stems from political inaction rather than genuine financial constraints.
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US Senate Democrats are demanding that Dr. Mehmet Oz, President Trump’s nominee for a position overseeing Medicare, pay an estimated $400,000 in allegedly avoided taxes. This call for payment highlights a concerning pattern of tax avoidance among high-profile individuals, raising serious questions about accountability and fairness.
The situation underscores a double standard in the tax system. While ordinary citizens face stringent penalties for even minor tax discrepancies, individuals with substantial wealth and influence often appear to evade significant tax liabilities without facing comparable consequences. This discrepancy fuels public distrust and raises serious questions about the equity of the tax system.
The substantial amount of unpaid taxes, allegedly $400,000, is not insignificant.… Continue reading
In 2024, Tesla reported $2.3 billion in U.S. income but paid zero federal income tax, a trend reflecting a three-year total of $10.8 billion in U.S. income taxed at only 0.4%. This remarkably low tax rate resulted from utilizing various tax strategies, including accelerated depreciation, stock option tax breaks, and unspecified U.S. tax credits. Furthermore, the company leveraged net operating losses to offset income, and potential future tax savings are looming with proposed legislation that could provide additional substantial benefits.
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President Trump’s administration, spearheaded by Commerce Secretary Howard Lutnick, aims to dismantle the IRS, shifting the tax burden onto external entities. This initiative, evidenced by planned IRS layoffs and a $20 billion budget cut, is actively underway despite ongoing tax season. Simultaneously, Elon Musk’s Department of Government Efficiency seeks access to all taxpayer data, further indicating a radical restructuring of the tax system. The feasibility of completely abolishing the IRS, however, remains uncertain due to potential legal challenges and congressional opposition.
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Tesla reported $2.3 billion in income in 2024 yet paid zero dollars in federal income taxes, utilizing accelerated depreciation and unspecified tax credits. This follows a trend of minimal tax payments in previous years, resulting in a three-year average tax rate of 0.4 percent—significantly lower than the 21 percent statutory corporate rate. The company’s tax avoidance strategies highlight loopholes within the U.S. tax system, which disproportionately benefit corporations and the wealthy. These practices have allowed Tesla, despite its immense valuation, to significantly reduce its tax burden.
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During a Nevada rally, President Trump endorsed a proposal to eliminate all federal income taxes. This suggestion followed a crowd member’s request to suspend all federal taxes, prompting Trump to propose funding the government solely through tariffs on imported goods. He cited a historical period without income tax, suggesting tariffs could generate sufficient revenue. Trump argued this system, while not without drawbacks, led to a period of great American prosperity.
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Senator Ron Wyden criticized President-elect Trump’s proposed “External Revenue Service,” arguing it’s a deceptive tactic to mask massive tax cuts for the wealthy funded by increased taxes on families and small businesses. Trump intends to use tariff revenue, potentially collected by a renamed Treasury Department office, to offset the cost of extending 2017 tax cuts. However, analysis shows that resulting price increases from tariffs would outweigh the tax cuts for most Americans, benefiting only the wealthiest 5%. This proposal follows reports that Trump is considering a national economic emergency declaration to justify widespread tariffs.
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I am deeply troubled by the recent revelation that U.S. billionaires paid a lower tax rate than working-class Americans for the first time in our nation’s history. This alarming data point highlights the stark inequality and unfairness that plagues our tax system. The fact that billionaires can escape paying their fair share of taxes by living off their wealth in the form of stocks is simply unacceptable.
It is infuriating to think that the wealthiest individuals in our country can exploit tax loopholes and avoid contributing their fair share to society. While hardworking Americans struggle to make ends meet and pay their taxes, billionaires continue to amass vast fortunes without being held accountable for their contributions.… Continue reading
As the news of G20 ministers proposing a minimum 2% wealth tax for the world’s billionaires circulates, it sparks a crucial conversation on the fairness of wealth distribution and tax obligations for the ultra-rich. The idea of taxing the wealthiest individuals may seem like a straightforward solution to address economic disparities, but the implementation of such policies presents a myriad of challenges and potential consequences that demand careful consideration.
One of the primary concerns raised is the possibility of billionaires relocating to countries with more favorable tax environments, leading to a loss of revenue for their home countries. The case of France serves as a cautionary tale, where the implementation of the wealth tax resulted in a significant exodus of millionaires, ultimately leading to a net outflow of wealth and a negative impact on the country’s economy.… Continue reading
President Biden’s plan to push for corporate and billionaire tax hikes at the State of the Union address is a stark contrast to the tax policies implemented during the Trump administration. While some may call it tax hikes, I prefer to see it as tax restoration, bringing tax levels back to when they were more balanced and fair for everyone. It is essential to note that these tax increases are aimed at the wealthiest individuals and corporations, not the average American.
Raising the corporate tax rate from 21% to 28% is a step in the right direction, but one might argue that it should be restored even further to the pre-Trump level of 35%.… Continue reading
John Q. Hosedrinker 
Matt Underwood