I think because they don't get any dividend to trigger income tax, instead they get a loan against their shares and spend that and roll over the debt to infinity.
I feel like this is a myth people share without ever looking into. You service the debt with income that you make and pay tax on the income you service the debt with
They do not need to service debt using taxable income, they can roll it over indefinitely or until death, at which point the tax obligation disappears due to the stepped-up basis (capital gains reset on death)
Bro, this is HN. Most of us here know at least one person who does this. It seemed pretty popular with the early Facebook folks. So this talking point that this is a myth isn't going to work here.
jazzyjackson|8 months ago
merth|8 months ago
_DeadFred_|8 months ago