You are also ignoring WEALTH and capital growth that does not generate income. For example, wealthy people can do 1031 property exchanges - which is non taxabl

You are also ignoring WEALTH and capital growth that does not generate income. For example, wealthy people can do 1031 property exchanges - which is non taxable way to sell and buy a replacement property. A wealthy person can construct corporations that generate lots of tax "losses". For example, Amazon does not make very little in terms of taxable profit. If Jeff Bezos wants to buy a house, he can use his Amazon shares as collateral against a loan that Amazon makes to Jeff to buy the house. Completely legal so long as it is disclosed. The wealthy make things that are after tax expenses to you and I - a before tax business deduction. Lunch? business deduction. Fancy car? Lease it for a business deduction - better yet have the company lease it. House? Host board meetings and company wine and cheese events in the house - leasing the house to the company at a very generous cost.