Billionaires like Mark Zuckerberg legally pay near-zero income tax by taking a $1 salary. Their wealth comes from stock appreciation. They access cash not by selling stock (a taxable event), but by borrowing against it. The core strategy is avoiding taxable income altogether.

The super-rich avoid capital gains taxes by borrowing against their appreciating assets instead of selling them. This allows them to fund their lifestyle tax-free. Since assets are only taxed upon sale, this deferral becomes permanent if they hold the assets until death, when the cost basis resets for heirs.

The wealthy build wealth by buying assets, borrowing against them tax-free for living expenses, and then passing the assets to heirs with a "stepped-up basis" upon death. This maneuver effectively eliminates capital gains taxes for the next generation.

The ultra-wealthy avoid income and capital gains taxes by taking no salary and instead borrowing against their massive, unrealized stock holdings. This provides them with liquid cash for spending and investment while never triggering a taxable event, effectively hacking the tax code.

The "Buy, Borrow, Die" tax strategy concentrates immense wealth, making the broader economy unhealthily dependent on the spending habits of the ultra-rich. As noted by The Wall Street Journal, this creates systemic risk; if the wealthy pull back spending, it could trigger a recession.

The wealthiest individuals don't have traditional paychecks. Instead, they hold appreciating assets like stock and take out loans against that wealth to fund their lifestyles. This avoids triggering capital gains or income taxes, a key reason proponents are pushing for a direct wealth tax in California to address this loophole.

The US tax system heavily favors owners over earners. Earners are taxed annually on income, limiting compounding. Owners, holding appreciating assets like stock, can defer taxes indefinitely by borrowing against their assets instead of selling them, leading to exponential wealth growth.

Instead of selling assets and triggering capital gains, the wealthy buy and hold assets like stocks. They then borrow against that portfolio tax-free for living expenses. When they die, a life insurance policy pays off the loan, allowing the original assets to pass to heirs tax-free.

Bezos takes an $82,000 salary, low enough to claim a child tax credit, while his wealth grows via untaxed stock appreciation. He then borrows against these shares, avoiding a taxable event. This perfectly legal strategy highlights how billionaires leverage the tax code to pay a lower effective rate.