> they don't even pay taxes on the money they spend, since they can borrow against the assets and spend on credit.
They have to pay taxes on the income/realised gains they use to pay the loan back when it matures. It’s not completely tax free.
> they don't even pay taxes on the money they spend, since they can borrow against the assets and spend on credit.
They have to pay taxes on the income/realised gains they use to pay the loan back when it matures. It’s not completely tax free.
> They have to pay taxes on the income/realised gains they use to pay the loan back when it matures.
No they don't, they just take out another loan. If you have a billion dollars in assets that increases in value by an average of 10% a year and can borrow money at 6% interest, guess how long you can spend anything up to your entire wealth on credit before the recapitalized loan principal catches up to your assets.