[v7p1Qbt1im]

Not really. They just get loans at incredibly low interest rates, using their equity as collateral.

They can deduct dept/interest payments from taxes and never actually have to sell a lot of their stock. That way their wealth can accumulate and they don‘t really generate income. Almost like the tax code is skewed in their favor.

[jdavis703]

How does the interest deduction work? I thought mortgage interest was the only interest people can write off their taxes.

[v7p1Qbt1im]

I’m not really familiar with US tax laws tbh. But even if you can’t you would only ever need to liquidate equity to pay the interest. Only those payouts would count as income.

Maybe an accountant can chime in.

[heliodor]

You too can take out a loan against some collateral and have the same tax treatment.

[v7p1Qbt1im]

You can yeah. But you’re not gonna get anywhere near the rates/types of loans you can get as a billionaire.

[heliodor]

The parent comment was complaining about unequal tax treatment, not about interest rates.

The interest rates aren't particularly important in this concept. Just that you have enough collateral so that you can life off the loan while the collateral appreciates in value, so that you're not forced to sell it.