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philipallstaryesterday at 9:24 PM2 repliesview on HN

> it simply means wealth grows slower, but still increases

But what does this mean? If you have a load of money in some companies, that's helping to fund their activities, and the companies' share price goes up a bit, you haven't gained any money. And you won't gain any until you sell some shares, which is already taxed.


Replies

greedoyesterday at 11:02 PM

They never sell their shares. They borrow against them, write off the interest, and then when they die, their heirs get a stepped up cost basis.

topaz0yesterday at 10:24 PM

Rich people have been borrowing with their stock as collateral to access their wealth tax free for decades.

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