How do they do it?

How do the ultra-rich get away without paying income taxes? They use a simple strategy known as buy-borrow-die.

This scam works really quite simply. The wealthy buy an investment or — in the case of the trillion-dollar seven — found a company. Then, as their asset soars in value, they never sell. Instead, they borrow against the increased value of their asset whenever they need cash.

Finally, they die, and each death wipes off the tax liability on all the gain that’s gone untaxed, sometimes for an entire adult lifetime.

What makes the Buy-Borrow-Die strategy possible? The gaping loophole in our tax law known as “stepped-up basis.” Under this loophole, those who sell inherited assets get treated as if they had purchased the assets at their fair market value on the date of the deceased owner’s death.

The end result: If Jeff Bezos’ children inherit his Amazon stock, about $200 billion in gains will face no tax at all.

Our political leaders have been aware of the stepped-up basis loophole for decades, yet have done nothing while the super-rich have been using Buy-Borrow-Die to accumulate obscene piles of untaxed wealth.

But the Biden administration is now calling on Congress to end stepped-up basis to fund the programs we need to move our country forward. Will our lawmakers now summon the courage to tax the trillion-dollar seven?

Check out the “Buy-Borrow-Die” video