Buy, Borrow, Die – Explained • Hacker News Board

Re: Buy, Borrow, Die – Explained

#501

Post by sooheon » Fri, Sep 06, 2024, 11:12 AM UTC

adastra22 wrote: post #498

sooheon wrote: post #489

Earlier quoted context omitted.

That would depend on your definition, but I think that's unlikely

Only taxing wealth "at rest" makes it avoidable for those who have the means to pay accountants to keep it moving in productive ways and thereby non-taxable. You then end up only taxing the people who can't afford that, which is the middle class.

If it's productive, it's contributing to society. If Alice's $100 goes to Bob's wages, which buys Charlie's shoeshine service, which pays for a week of TV dinners, I don't think those 100 dollars should be taxed more than David's 100 dollars that just sat in his bank account. But I do agree, we should prefer taxes that can't be avoided, LVT being the best option.

Re: Buy, Borrow, Die – Explained

#502

Post by anonfordays » Fri, Sep 06, 2024, 2:58 PM UTC

alasdair_ wrote: post #495

anonfordays wrote: post #485

Earlier quoted context omitted.

Banks and investment firms are not allowed to loan money out privately for less than the AFS, which is 3.72% right now: https://www.investopedia.com/terms/a/applicablefederalrate.a...

It's not a loan, it's considered a security.

It's a loan on securities, like a home equity loan. They are considered loans and such must follow the minimum interest rules.

Re: Buy, Borrow, Die – Explained

#503

Post by anonfordays » Fri, Sep 06, 2024, 3:15 PM UTC

lelandbatey wrote: post #500

anonfordays wrote: post #484

Earlier quoted context omitted.

His story is BS. Banks and investment firms cannot loan money for less than the AFS, which is 3.72% right now: https://www.investopedia.com/terms/a/applicablefederalrate.a...

They discuss this in the linked post; technically these are securities, not loans: https://old.reddit.com/r/BuyBorrowDieExplained/comments/1f26... They were asked the question: > If you take a loan out to live off of of 80 million you would at least need to pay 5% to make it a true loan. The IRS That is 40 million in interest over 10 years. You said .05% loans, that is not realistic because you would get hit with inp…

That is incorrect and the linked IRS tax code doesn't even cover this specific example. It is a security to the bank since you're selling what amounts to an options contract to them. The cash they loan you is still considered a cash loan, and must follow the minimum AFS rate. The "options contract" for appreciation rights is the collateral for the loan (secured loan), the loan is still a loan. It's effectively the same as a home equity loan.

Re: Buy, Borrow, Die – Explained

#504

Post by xorcist » Sat, Sep 07, 2024, 8:20 AM UTC

valval wrote: post #471

xorcist wrote: post #411

Earlier quoted context omitted.

Even if that individual moved into the village knowing perfectly well that this is the rule in this village? It is not unreasonable to me that you have to pitch in for common goods if you live in a village, and should you refuse to take part in this you might find yourself in a situation where you have to either move out of the village or forfeit your share.

I don't think "you should just escape the oppression" is good advice per se. I think it's victim blaming, in today's terminology.

Flouting laws does not a victim make. A more suitable modern expression is probably "play stupid games, win stupid prizes".