Name: How Rich People Hide Their Money
Uploaded: 2024-02-19T03:20:27.000Z
Duration: 8 min 33 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

- The US Department of Treasury estimates

that the ultra wealthy in America are skipping out on more

than $160 billion worth of taxes every year,

- And we know that number is impossible to imagine.

So compare that to the roughly 48 billion

for the next decade on student debt relief.

An extra 160 billion could go a long way.

Well, most of us are taxed on our income.

A percentage of each paycheck goes back to the government

and we use the rest to buy groceries, pay bills,

- The ultra wealthy though, don't earn much

Instead, they grow their wealth through investments,

and it's only when they sell those investments

or shell companies in the Cayman Islands sound

but some wealthy people do use foreign accounts

to shield their money from the IRS's irises.

- These tax havens are attractive places to stash cash

and maybe not tell the US government that it's there.

or maybe their financial advisor will find a country

that collects low or no taxes on foreign funds stored there.

But foreign banks are still supposed to report

So instead of putting an account in their own name,

and open accounts in that company's name.

Popular tax haven countries like Panama and Luxembourg,

while these anonymous company owners move money

in and out of their accounts without reporting it

- But like we all learn from the Wolf of Wall Street,

US law requires that citizens report all of their assets,

- Lucky for the rich, there are totally legal tax havens

In addition to the taxes we pay to the federal government,

So a state might collect income taxes on the money we earn,

capital gains taxes on the money we make from investments,

and property taxes on the value of our homes.

But all states decide this mix a little differently.

and Jeff Bezos have lived there for decades

and eight states, including Nevada, Texas,

and Florida, don't tax capital gains either.

Wealthy people who want to pay the least amount

that doesn't tax their income and investments.

- In 2021, Washington State passed a law that allowed them

to collect capital gains tax for the first time.

would owe the state 7% of anything they earn

who makes billions a year selling Amazon stock, do?

where he'll keep $610 million in his pocket

where in the world is Carmen San Diego with their dollars,

there's another strategy that wealthy people use

It's only when we sell them that we get taxed,

and that's why the ultra wealthy just don't sell.

Instead, when they need to buy a new spaceship,

- Back in 2020 when we knew Elon Musk mostly

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How Rich People Hide Their Money

strategy

coincidence

roughly

decade