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News Wire / economy

Wealthy Individuals Use Stock as Collateral for Loans

WAMU 88.5 DC Washington DC 15d15d Impact 6
Wealthy individuals are foregoing salaries and profiting from their businesses by retaining company stock, leading to extraordinary wealth growth. This wealth has been in the 100 to 200 billion dollar range. Super wealthy individuals can borrow money against their stock holdings to fund their lifestyles without selling assets. This is possible because the amount needed for living expenses is insignificant compared to their total wealth. This strategy allows them to maintain their assets while accessing funds.

Topics

taxation wealth inequality

Developing

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Sources · 7 independent

WAMU 88.5 DC

“wealth that has been in the 100 to 200 billion dollar range. that's been his choice dollar amount. And then the next step of the Tax Avoidance Playbook is, so of course, when they're foregoing salaries, they're not foregoing profiting from their businesses because these people own the stock of their companies and they retain the stock of their companies and as a result, they enjoy extraordinary growth of wealth. wealth that has been in the 100 to 200 billion dollar range.”

WAMU 88.5 DC

“the super wealthy don't need to sell in order to support their lifestyles. They are able instead to simply use their stock as collateral against which they can borrow all the money they need to support their lifestyle.”

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