00:00Your paycheque is taxed before you spend it while billionaires spend without paying any taxes.
00:05This happens because the tax code treats debt and income as two entirely different worlds.
00:11When you earn money you pay the IRS but when they borrow it they pay nobody.
00:16Billionaires pledge their stock as collateral to get massive cash loans from major global banks.
00:22A bank loan is not taxable income because the money must eventually be repaid.
00:28However they never actually repay the loans with their own taxable cash or salary earnings.
00:34They simply take out a second larger loan to pay off the interest of the first.
00:39By borrowing against their stock they keep ownership while accessing the liquidity of their wealth.
00:45Banks offer them interest rates that are significantly lower than what you pay for housing.
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