Tax Strategies of the Ultra-Wealthy

The video discusses how the ultra-wealthy in America evade taxes using various strategies. It explains the difference between income and investment taxation, and how the rich use offshore and domestic tax havens to hide wealth. The 'buy, borrow, die' strategy is highlighted, showing how investments are used as collateral for loans to avoid taxes. Tax loss harvesting is another method used to offset gains with losses. The video also covers legislative attempts to close these loopholes, though none have been enacted yet.

How much tax revenue is estimated to be lost annually due to the ultra-wealthy not paying taxes?

• $48 billion

• $160 billion

• $100 billion

• $250 billion

What is one method the ultra-wealthy use to hide their money from the IRS?

• Donating to charities

• Using secret Swiss bank accounts

• Investing in local businesses

• Buying government bonds

What is the purpose of forming shell companies in tax havens?

• To increase business transparency

• To comply with international laws

• To support local economies

• To hide assets from tax authorities

Which state does not collect an income tax, making it attractive to billionaires?

• Washington

• California

• New York

• Illinois

What is one reason wealthy individuals might move to a state like Florida?

• No capital gains tax

• Higher property taxes

• Better weather

• More business opportunities

What is the 'buy, borrow, die' strategy primarily used for?

• Maximizing charitable donations

• Reducing business expenses

• Increasing investment returns

• Avoiding capital gains taxes

Which tax rule allows heirs to avoid paying taxes on the full capital gains of inherited investments?

• Step-up in basis

• Capital gains tax

• Estate tax

• Inheritance tax

How do wealthy individuals use tax loss harvesting to their advantage?

• By purchasing luxury items

• By investing in high-risk stocks

• By donating to political campaigns

• By selling losing investments to offset gains

What is the estimated tax rate paid by the 25 richest Americans on their wealth increase?

• 10%

• 3.4%

• 14%

• 20%

How did Donald Trump reportedly reduce his taxable income in the 1980s and 1990s?

• By moving to a tax haven

• By donating to charities

• By reporting large business losses

• By investing in tech startups