And it’s tied to an asset. Stocks, real estate, something. That’s how loans work. The bank doesn’t just hand you money just for an IOU. It needs something to hold you accountable.
No it’s not. They are not buying an asset with. It’s sometimes back with with an asset as collateral but it’s not tied to an asset. The loan isn’t taken out to buy a home. It’s taken out as living expenses.
Oh, you mean as the destination of the money. But I wouldn’t be too quick to use this as criteria. Lots of people use loans like that because they get poor. Think HELOC, reverse mortgages,… Having a minimum value below which you are exempt seems much better.
Aren’t all loans tied to assets?
No.
That rich get loans that basically last their lifetime. They are income replacement. They are not tied to home, a car, etc.
They are just avoiding taxes.
I don’t blame them. It’s smart.
It’s why politicians need to eliminate it.
And it’s tied to an asset. Stocks, real estate, something. That’s how loans work. The bank doesn’t just hand you money just for an IOU. It needs something to hold you accountable.
No it’s not. They are not buying an asset with. It’s sometimes back with with an asset as collateral but it’s not tied to an asset. The loan isn’t taken out to buy a home. It’s taken out as living expenses.
It’s why a consumption tax would fuck the rich.
Oh, you mean as the destination of the money. But I wouldn’t be too quick to use this as criteria. Lots of people use loans like that because they get poor. Think HELOC, reverse mortgages,… Having a minimum value below which you are exempt seems much better.
I didn’t exclude that from my comment.
One of the differences is with a heloc you have to make payments. The loans Elon gets for example don’t have payments.
They can live this way for years.
I’m not opposed to rich people. I’m opposed to gaming the system.