https://old.reddit.com/r/AskEconomics/comments/1smjx29/was_c...

Obviously every person tries to avoid taxes - you don’t have to be rich do do that - but the idea that there are magic banks that loan money and don’t mind waiting decades to get their money back is some kind of weird propaganda.

>...I suspect you are simplifying what's happening quite a bit

People keep saying “buy, borrow, die” as if it is really that simple - like it is that one simple trick that banks and the IRS hate.

>...But wouldn't the more likely scenario be that you borrow 100m with a 10 year draw at x% interest and then at the end of the 10 years you do a stock sale (some taxes paid), pay the interest (interest is generally non-taxable) ...

Your scenario is not “buy, borrow, die” as a core concept of that meme is you take advantage of the stepped-up basis upon death and the estate pays the interest. With your scenario the person imght have an interest payment of 50 million + the original 100 million, so now they have to sell enough stock to pay the 150 million and the 23-36% taxes on the gain (depending on the state they are located in - obviously different for countries other than the USA). That isn’t estate planning, that is hoping your stocks really go up and that the loan doesn’t come due in a downturn like 2008.

>"oh no my art lost value!"

That trick where for example, where someone would donate some painting to a museum and pay someone to say the donation is with N million, might have worked at some point in time, but that kind of thing is pretty much guaranteed to get an audit these days from what I have read and I would be very careful trying to do that.

A variant of the "buy, borrow, die" which some claim is done is basically that a bank essentially becomes a minority shareholder of the estate for giving the money. Though I recall one CPA who dealt in this area replying that none of the family offices he knew would likely be interested in this approach - people like Goldman Sachs are not your friends.

Go get a calculator - if you took out a loan and had the interest set a the minimum of the AFR, what would it compound to in 30 years? It would obviously be much higher than just selling stock and paying capital gains on it.

The ultra rich do take out loans, and these loans do get repaid, and that money has to come from somewhere. Go google something like billionaire stock sales to see examples - if they all could just say, "Thanks for the zero percent interest loan! I'll pay you back in 30 years in my estate!" - I think they would have.

This is just Internet mythology. The IRS would go after such arrangements very quickly - the IRS has the Applicable Federal Rate for loans. Though this really isn't an issue with banks as they are not charities and tend to want to make money.

>Pournelle's Iron Law of Bureaucracy states that in any bureaucratic organization there will be two kinds of people":

>First, there will be those who are devoted to the goals of the organization. Examples are dedicated classroom teachers in an educational bureaucracy, many of the engineers and launch technicians and scientists at NASA, even some agricultural scientists and advisors in the former Soviet Union collective farming administration.

>Secondly, there will be those dedicated to the organization itself. Examples are many of the administrators in the education system, many professors of education, many teachers union officials, much of the NASA headquarters staff, etc.

>The Iron Law states that in every case the second group will gain and keep control of the organization. It will write the rules, and control promotions within the organization.

https://www.jerrypournelle.com/reports/jerryp/iron.html

Democrat Presidents: Bosnia, Haiti, Iran, Kosovo, Libya, Niger, Somalia, Syria, and Yemen.

Republican Presidents: Afghanistan, Cambodia, Grenada, Iran, Iraq, Libya, Pakistan, Panama, Somalia, Syria, and Venezuela.

It is outside the 50 year timeframe, but go back another 10 years and you have Viet Nam which caused more deaths than all the rest combined.

Economists refer to this idea as the lump of labour fallacy.

https://en.wikipedia.org/wiki/Lump_of_labour_fallacy

In the last few decades both political parties in the USA have tried to outdo each other in reckless over-spending, but for the first couple hundred years that wasn't the case. Something changed.

If your parents were WW II vets, wouldn't they be part of Greatest Generation (often considered to be those born 1901–1927)? Silent Generation are often considered to be those born 1928–1945. They weren't adults when WW II was fought.

Yes, utility solar is very safe. Unfortunately rooftop solar is much more dangerous and also much, much more costly. So one has to wonder why anyone supports the massive subsidies that are still given to rooftop solar.

Rooftop solar is good but it shouldn't be a gift to the wealthier residents paid for by those less wealthy. Any subsidies for solar power should go to utility grade solar. Money is limited and is fungible - a dollar spent subsidizing utility solar will go much, much, further than a dollar spent subsidizing wealthy homeowners who install panels on their roof.

Yes, that is true - that is what Warren Buffet says are his reasons. It might also be true that the actual reasons might have more to do with the fact that he didn't like the idea of having to potentially dilute his 100+ billion dollar wealth in shares of Berkshire or that he didn't like having to increase employee compensation to compete for workers since he refused to give out options.

Is your argument actually that women don't generally compete with men in sports because the sports don't want to embarrass the male athletes if they lose? If so, I suspect this is a bad faith argument, but if not, you can simply do a little searching to find that there is often quite a bit of difference between the performance of top tier male athletes and top tier female athletes. For example, no woman has ever run a 4 minute mile in competition and more than 2,000 men have and even about 30 high school boys have. I am sure you can find other examples.

>...Abby Tiscareno, a licensed daycare provider in Utah, was wrongfully convicted of felony child abuse when a child under her care suffered brain hemorrhaging. After calling emergency services, subsequent medical tests supported these findings. However, during her trial, requested medical records from the Utah Division of Child and Family Services (DCFS) were not provided. It wasn’t until a civil suit that Ms. Tiscareno saw pathology reports suggesting the injury could have occurred outside of her care. She was granted a new trial and acquitted. Her subsequent lawsuit for due process violations, alleging that DCFS failed to provide exculpatory evidence, was dismissed due to lack of precedent indicating DCFS’s obligation to produce such evidence.

https://innocenceproject.org/news/what-you-need-to-know-abou...

https://www.cbsnews.com/detroit/news/henry-ford-implements-5...

For that matter, it has killed many, many more than the two atomic bombs dropped on Japan!

I think after you got your draft notice in the 1960s to go fight in the Vietnam war, you might have had second thoughts.