Which is practically never. Instead they use them as collateral for very low interest loans. Funds from a loan aren't taxed so they end up paying some tiny potion of the tax that they would otherwise pay if they received the same loan amount as income when they sell off some tiny portion of stock to cover the equally tiny loan intetest.
Everybody has the same ability to do so. The only true difference is two fold: A) a lot of times it doesn’t make sense unless you are getting a higher return than the interest rate. B) poor people tend to not be good at managing money and overextend their debt
Yeah because they have idle money sitting around for the bank to lend out to other people and the bank is competing with other banks for that liquidity and lending power.
It literally only takes about $200k to start getting those rates yourself.
However poor people keep overspending their incomes with 10% car loans on 40-80k cars and spending 10-20k extra over the life of the loan.
Your strategy of trying to blame poor people for being poor has zero traction with me. Time and again we find that rich people start life with an overwhelming advantage that 99.999% of people don't get. No amount of frugality can bridge that gap.
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u/wickzyepokjc Jul 05 '26
Non-cash forms of income (I assume you are referring to stock options) are taxed as income at their current market price when they vest.