Jack Crivici-Kramer

So you can pass as much wealth as possible to the next generation.

In fact, this strategy has a name.

It's called buy, borrow, die.

And we'd love if you walked into your local H&R Block and asked, can I have the buy, borrow, die plan, please?

Carol from accounting, she's going to sit down, stand up, and she will stay seated after that one.

And Nick, this buy, borrow, die tax avoidance strategy, the result is that America's 400 richest people pay half the effective tax rate

of a simply normal wealthy person.

Translation, the stupid wealthy are paying 24% effective tax rates if you include all the taxes.

While the regular wealthy are paying a 46% effective tax rate.

You see, besties, it's understood that you pay a higher tax rate the more money you make, but only to a certain point.

Once you hit the three comma club and become billionaire rich, we're talking second boat for your third house that lives on your fourth yacht.

You stop taking a salary, you take stock as compensation instead, and your income tax disappears.

And besties, this is all legal because our tax code just never was able to account for the billionaire accounting schemes.

And our Congress hasn't moved to change that reality.

So billionaires don't dodge taxes.

They dodge income.

That's the trick.

They don't dodge taxes.

They dodge income, which leads to our takeaway.

So Jack, what's the takeaway for our buddies hanging out in the three comma club?