Oddbean new post about login | logout It’s not completely true for ‘no tax’ because the rich still need to sell their stock to pay their debt from the borrowed money. Also that debt will have an interest rate of ~7%+. Of course borrowing gives them more flexibility, ex. They can hold their shares longer for lower capital gains etc.
An interest rate of 7% is incentive enough for banks and other criminal institutions to lobby to preserve this tax fraud scheme. Why not pay a bank 7% interest instead of contributing to road maintenance, fire services, and the like at 40%. It basically guarantees the middle class gets left with the bill.