Techinally it is but legally its not in theory he would sell the shares at some point and then pay tax, but he would never do that, instead he would take a loan from bank with the shares as security and then take a ever bigger loan and the cycle continues, so he has 0 income and therefore 0 tax
But why it's better to have equity than salary? Is one taxed more than the other? Do the financial tricks the super rich use, necessarily apply to ordinary people? I'm guessing it probably needs more than a short video.
Depends slightly on the country but salary is subject to income tax, equity isn't really taxed at all as long as it's just stock but the moment you. This means it exhange the stock to money you pay taxes which is still less than the income tax you would pay for the same amount of salary. This means it does nit apply to nirmal people because to buy enough stock to get enough dividends not to have to earn a salary would cost more than a lifetime's worth of salary for normal people. Mark doesn't live off dividends and I'm nit gonna try to explain it right now but to live like Mark and ither billionares requires even more money because basically they take a loan every time they want to buy something
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How's this not considered tax evasion 😮
Techinally it is but legally its not
in theory he would sell the shares at some point and then pay tax, but he would never do that, instead he would take a loan from bank with the shares as security and then take a ever bigger loan and the cycle continues, so he has 0 income and therefore 0 tax
How do you buy equity without a salary...
Great video!
But why it's better to have equity than salary? Is one taxed more than the other? Do the financial tricks the super rich use, necessarily apply to ordinary people? I'm guessing it probably needs more than a short video.
Depends slightly on the country but salary is subject to income tax, equity isn't really taxed at all as long as it's just stock but the moment you. This means it exhange the stock to money you pay taxes which is still less than the income tax you would pay for the same amount of salary. This means it does nit apply to nirmal people because to buy enough stock to get enough dividends not to have to earn a salary would cost more than a lifetime's worth of salary for normal people. Mark doesn't live off dividends and I'm nit gonna try to explain it right now but to live like Mark and ither billionares requires even more money because basically they take a loan every time they want to buy something