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So the biggest complexity is in terms of capital investments as opposed to income. Basically if you are paid money and put that money in the bank, you pay year
by lsiebert 5y ago
So the biggest complexity is in terms of capital investments as opposed to income.
Basically if you are paid money and put that money in the bank, you pay yearly income taxes on the income the money earns.
If you are instead given a bunch of stock shares, you don't pay taxes on the stock when the price goes up, only when it's sold, which leads to all sorts of possible ways to side step paying taxes, or put them off and then paying them in a lump sum, or paying interest on loans secured with the stock, where the loan isn't considered income for tax purposes, etc.
https://www.businessinsider.com/american-billionaires-tax-avoidance-income-wealth-borrow-money-propublica-2021-6?op=1 https://www.businessinsider.com/american-billionaires-tax-av...