For starters: Stop allowing people to borrow money against securities. Most wealthy people live and invest on borrowed cash which compounds their wealth. It’s a strategy that only works if you have a lot of money.
Changes in tax laws need to happen. People using the borrowing strategy above pay very little income tax. They often get tax breaks for the interest on the loans. Their real income is capital gains which gets taxed at near poverty levels. Someone making 40,000-85,000USD gets a marginal tax rate of 22%. Capitals gains tax is 15%.
For starters: Stop allowing people to borrow money against securities. Most wealthy people live and invest on borrowed cash which compounds their wealth. It’s a strategy that only works if you have a lot of money.
Changes in tax laws need to happen. People using the borrowing strategy above pay very little income tax. They often get tax breaks for the interest on the loans. Their real income is capital gains which gets taxed at near poverty levels. Someone making 40,000-85,000USD gets a marginal tax rate of 22%. Capitals gains tax is 15%.
I love it. This should be the discussion.