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Originally from the North of England. Growing up my mother had a huge leather bound book full of stories of ghosts, alien sightings, spontaneous combustion, fairies, ghouls and more. You name it, it was in there. And I was fascinated. I've often thought about that book. I'd love to ask my mother about it but alas, she is no longer with us. So I resolved to create this site. It's the closest thing to it I could get. I hope that some of the joy I had reading that book is passed on to you here today.

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How The Rich Avoid Taxes – In Just 3 Steps

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With rising inflation, stagnant wages and an ever increasing number of working people falling into poverty, I’d like to show you the mechanisms that help the wealthy avoid taxes.

Not just over the course of a year. Or two. Or even ten years. But completely and altogether, for their entire life. Even after death.

With Elon Musk buying Twitter for a reported 40 something Billion, it seems the perfect time to highlight how a very wealthy individual could secure huge funding and still pay no taxes. Funny how they never have the liquid cash to actually do something useful for the rest of humanity but when it’s something for themselves, the money appears.

Step No 1. – Buy

Unfortunately, the old adage of needing money to make money comes into play here. Effectively stopping all but the very wealthy from even progressing past step 1.

You see, if you earn a wage, you get taxed before you see any of it. Not so if you can buy appreciating assets and hold on to them.

So to complete the first step you need to be able to buy appreciating assets. And the more you can buy, the better. $10 million at 2.8% a year would be $280,000. Without doing anything. But what does that matter? When you sell those assets, you will be taxed on the gains, right?

Right.

But you don’t sell. That’s where step No 2 comes in our guide to how the rich avoid taxes.

Step No 2. – Borrow

So if you don’t sell, what do you do for cash? Even Billionaires need liquid money after all. So you borrow against your assets. If you have enough assets, creditors will line up to lend you money at very attractive rates. The risk is minimal to them, so why wouldn’t they? And there are no scheduled payments on the loans. You pay them back when you want. In one lump sum. You can even roll them into a new loan down the line if you need more.

As we see in the above, once you get above $2.5 million you can obtain incredibly good rates to borrow at. And don’t forget, the more assets you have, the lower you can negotiate your rates.

Ok. So now you have yourself set up to pay no taxes for the rest of your life. You borrow against your assets and use that money to fund your lifestyle. Secure in the knowledge you pay no taxes. But there’s a niggle at the back of your mind. What if you, heaven forbid, had to pay taxes after your death? Nope. Let that worry subside. It’s not gonna happen. We talked about this at the start, remember?

Step No 3. – Die

This should be where the wealthy are finally made to pay their share. But the tax codes are biased to them here too. You see, the heirs inherit at a stepped up basis. Meaning they would only start to pay capitol gains taxes on any increase in value after the assets have passed to them. Essentially erasing any taxes that would have been paid in gains.

The heirs then pay off the loans, take their huge untaxed gains and start the process all over again.

That’s all there really is to it. All you need is a big pile of (usually) generational wealth, no morals and the desperate need to have much more than you could ever use and you’re good to go.

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