Similar reason that CEOs take the $1 salary, purely stock growth mixed with lower taxes and more under the radar to lower their taxable income [1] Most rich pe

Similar reason that CEOs take the $1 salary, purely stock growth mixed with lower taxes and more under the radar to lower their taxable income [1] Most rich people that are mega wealthy pay minimal tax by taking loans against their foundations/trusts. As you know there are no taxes on loans but a percentage, that may or may not just go right back to them. They essentially use the trusts/loans and the fact that they are essentially zero risk to take out other loans that get interest rates below inflation, sometimes very minimal interest[2]. That is essentially free money. Should the interest rates ever adjust if not fixed they can buy outright quickly. The same thing happens with trusts/foundations. They have this hoarded money sitting there as a base they can leverage. Yes it is nice some will go to others when they pass but ultimately they would not do this if they could not use this leverage advantage. It is essentially a hack on lowering or even completely removing any taxable income as long as you have it. [1] http://www.cnbc.com/id/46236916 http://www.cnbc.com/id/46236916 [2] http://www.wsj.com/articles/SB10001424127887323527004579079162826690296 http://www.wsj.com/articles/SB100014241278873235270045790791...