How are they dodging billions of dollars worth of capital gains tax of, as you said, they're not actually getting any billion dollar loans?

You're arguing that billionaires are dodging a 20% tax on millions of dollars. So we're talking about ~0.02% of their net worth. I don't think that's the thing that's bankrupting the country.

Sure. But now you're admitting that the original point that this strategy can be used to dodge billions of dollars worth of taxes is false.

Banks don't give out billion dollar loans for fun. They need to both have a billion dollars on hand and not have any other options available that more profitable than a personal loan to a billionaire.

Damn, it's almost like these corporations deliver meaningful value to consumers.

You now have to give them $1.5B, plus you still need to pay that 20% capital gains tax. So you have to sell your entire $1.8B portfolio to pay back that $1.5B debt. So you've gained nothing.

Now keep in mind that 7% growth is in no way guaranteed, but the 5% interest payments are.

Suppose you have $1B in stock and you want to spend $1B in cash. You get a loan for 5% interest, backed by your stock that grows on average at 7%. Let's say after 10 years your bank doesn't want to renew your loan. Your stock is now worth $1.8B, and your debt is now $1.5B.

These aren't hard numbers but my point stands. Debt comes with interest costs that need to be paid, and over time that interest cost can be higher than the cost of just paying your taxes.

Right, but one way or another, the loans have to be paid back eventually, with interest. Say you get a loan at 5% interest, after 4 years of carrying that debt you've lost more money in interest payments than you saved in taxes.

Oh that makes sense. But then, how does he pay off that third loan?

And how does he pay for that loan?

For me, the thing that distinguishes a jrpg from a wrpg is that in jrpgs you're watching the story happen to the main character. In wrpgs, you are the main character; the story is happening to you. Pokemon falls into the latter.

Andrew Tate got banned from Bluesky in less than one day.

Another reason things are so much better here than Twitter.

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