I do work for a financial advisor, tax loss harvesting happens every tax season. You sell positions that are at a loss and invest the money in something else. Now you can claim that you lost money even if you reinvest in an asset highly correlated in value to the original one (there are some rules about what you can buy, but they largely don’t affect this technique).
This isn’t even rich people, under a million in assets. If you’re really rich there are tons of different loopholes available to you.
Which is exactly the problem. The billionaires have access to loopholes that the rest of us don’t, and dont pay social security tax on any meaningful part of their income. So they pay an appreciably lower effective tax rate than the middle class
I do work for a financial advisor, tax loss harvesting happens every tax season. You sell positions that are at a loss and invest the money in something else. Now you can claim that you lost money even if you reinvest in an asset highly correlated in value to the original one (there are some rules about what you can buy, but they largely don’t affect this technique).
This isn’t even rich people, under a million in assets. If you’re really rich there are tons of different loopholes available to you.
Which is exactly the problem. The billionaires have access to loopholes that the rest of us don’t, and dont pay social security tax on any meaningful part of their income. So they pay an appreciably lower effective tax rate than the middle class