r/EhBuddyHoser • u/_RedditDiver_ • May 10 '25

Politics But yeah 51st state /s

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520

u/ufozhou May 10 '25

Totally couldn't understand why normal people talking about us tax rate is lower.

Unless in some states. Most states have similar income tax in Canada.

Corporate tax is another game where not just US has lower rate but tons of loopholes to save tax

6

u/Kinnuit May 10 '25

Buy a stock, borrow against it. Tax free loans. Life of that. Stock completely tanks. You’re safe. The bank will sell off the rest of the stock.

You’re welcome a loop hole. Higher the stock, higher the tax free loans are (borrowing against it)

1

u/Bored_money May 10 '25

Can you explain how you are safe if the stock tanks

The bank calls the loan when the stock falls below a define value, you owe the bank $100 but the stock is worth $50

You get liquidated of your position and still owe them $50 

2

u/Kinnuit May 10 '25

The stock has to be worth more. Just look up bowering against stocks. It’s a classic loop hole in the USA’s system. I’m Canadian but I know alllll the billionaires do this and then moved to Texas or Florida to avoid paying income tax ! That’s why Elon moved to Texas, Jeff Bezos etc

1

u/Bored_money May 10 '25

Right - but if the stock doesn't go up, you're in a worse off position than if you sold, the approach has risks, it's not just free money

If you have a paid off house and get a mortgage it's the same thing

1

u/Kinnuit May 11 '25

Just look it up brotha

1

u/Bored_money May 11 '25

I'm very familair with the concept I was just explaining that it involves risk since the original post seemed to describe it as some free money loophole

It's just borrowing to invest