How the ultra-elite have tricked the world
How the ultra-elite have tricked the world
Let’s understand how millionaires and billionaires hide their wealth around the world.
It’s all about taxes.
In most places, you pay an income tax to the government.
This tax is on income you earn from your job.
Most of the lower and middle class earn income as a worker from their boss, their employer.
You also have capital gains taxes.
What are capital gains?
These are gains made on investments or assets you own.
The tax rates are different.
In countries like the US, Canada, Europe and the rest of the world, the tax rate for capital gains is significantly lower than income.
This is how the government steals disproportionately from the poor and not the rich.
Lower to middle-class people earn income from their job.
But they don’t own a lot.
So they pay income taxes.
Rich people on the other hand own assets or investments.
These investments earn more money over time than any income.
Often times many rich people don’t have an income and instead keep their net worth in their stocks or investments.
This means they don’t get taxed as highly because according to their tax filing, they made no income.
They also pay expensive accountants and lawyers to hide their money in tax shelters all over the world.
Grand Caymans, Ireland, Luxembourg, Dubai, but also America and Britain.
Ask any American billionaire about Delaware corporations and Russian oligarchs about their investment properties in London.
This happens in our backyard.
But the real kicker is the inheritance tax and estate tax.
Was thinking about this today after watching a Breaking Points video on Yves Chouinard, the founder of Patagonia.
He recently got praised in the media for giving all his shares of Patagonia to a charity he still has full control over.
The New York Times wrote a false article claiming that by donating these shares, there was no difference in his taxes, which is flat-out wrong.
He’s doing what all old rich people do as they get older.
Transfer your assets to a charity you set up and your family controls and pay no taxes.
It’s what Soros has done for years. (Side note: learned this in a great video by Jake Tran on Soros’ history).
Or you can put all your shares in a trust you have access to where you never sell your investments.
Instead you can take out loans from the bank to pay for your lifestyle while you never sell your assets so you pay no taxes.
Ask Peter Thiel about that.
He has a $5 billion dollar IRA account from all the shares of companies he’s been a part of, AND NEVER PAYS TAXES ON THESE.
Then for these ultra-elites when you die, you pay little inheritance tax so your family gets to keep all your money.
Now you might argue this is just rich people taking advantage of legal loopholes, right?
This was Trump’s argument: ‘I’m rich because I’m smart enough to swindle the government.’
He’s not wrong, but it’s a massive problem.
If you earn money in a country, live in that country and use the services in that country like roads, water, and healthcare, you deserve to pay your fair share.
But this is not just a Western problem, this is an international problem.
Billionaires and corporations have entrenched themselves in government affairs across the world to not address this.
That’s all well and dandy when most of the population is peaceful.
But what happens when people can longer afford the basics?
Then what?
Do they let their ego and greed bankrupt countries and destroy millions of lives all so they can buy a house they’ll never visit and hang out with family and friends who don’t even like them?
Best of luck to those schmucks.
Many billionaires would argue that by having a charity, they are able to enact more change than the governments, which is true.
Bill Gates has done more for global health than anyone in the world, and he should absolutely be commended for that.
But obviously he’s using these tax shelters and loopholes to hide his money from the government.
Buffet’s said many times he pays more in taxes than his secretary.
Do you think any of these mega-rich people are going to fight for reform?
You think any of them are going to seriously take away their friends’ money?
They’d be ostracized. They would be outcasts. They’d never be invited back to the million-dollar events and exclusive rich people parties.
They’re not gonna do that.
So who is?
Because we need serious tax reform.
My fear is it won’t come till too late.
Once America crumbles on itself, then maybe a leader will emerge that actually wants to change things for the better.
Because the American way of capitalism where bankers on Wall Street get a pass, they buy politicians through Super PACs, pack the courts with people they put on, change laws to allow corporations to act as individuals, and put no price cap on the amount of money that can be spent in politics so no rules or laws actually get changed, it doesn’t work.
Chomsky told the world and no one listened.
George Carlin told us ‘it’s a big club, and you ain’t in it.’ (Side note: it’s a legendary bit that is a must-watch for everyone)
Maybe this was always destined to happen.
The kings and queens of history never shared their wealth with peasants so why would the elites do it today?
They won’t because a lot are driven by greed and ego. Human qualities that have never changed.
The difference today is the amount of wealth aggregated by very few across the world has gotten sickening.
The middle class and poorest are suffering and any time inequality has gotten this bad, revolutions have come.
This time will be no different.
Partly because of how the richest people in our world have tricked us all.
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