World News

32310 readers

839 users here now

News from around the world!

Rules:

Please only post links to actual news sources, no tabloid sites, etc
No NSFW content
No hate speech, bigotry, propaganda, etc

founded 5 years ago

MODERATORS

[email protected]

293

Evergrande: China property giant and its founder accused of $78bn fraud (www.bbc.com)

submitted 7 months ago by [email protected] to c/[email protected]

87 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 15 points 7 months ago* (last edited 7 months ago) (1 children)

except in theory they can borrow from the bank with their stock as leverage and would never actually need to liquidate anything (and they do just that).

[–] [email protected] 7 points 7 months ago

Yep. This fucking loophole in the American tax system.

You borrow against your existing wealth, then the cost basis of your investments resets upon inheritance. So your estate can sell the investment to pay off the debt, and no capital gains tax is ever paid.

Because of this, in America, capital gains tax only applies to the middle class. The rich have a clear and obvious loophole.