Letter to the editor: How the wealthy exploit tax loopholes

There are many loopholes in our tax system that allow the extremely rich to legally cheat on their taxes. One such tax avoidance scheme is buy/borrow/die.

First, the wealthy buy assets that appreciate in value without producing cash. These assets can include things like stock, collectibles and, particularly, real estate. Next, they collect little or no salary for their work. Then, because they are wealthy, they borrow money against their assets at special ultra-low-interest rates. They live off of their borrowed money, which supports their lifestyle and the accumulation of even more assets. This borrowed money is not considered income and, therefore, is not subject to income tax. The rich hang on to their assets for decades while accumulating tax-free wealth.Then, when they die, their heirs receive that accumulated wealth, tax free.

Many of our ultra-rich use this tax avoidance scheme to avoid paying their fair share of taxes. This is why, for many years, they pay little or no taxes.

A few of our elected representatives tried to correct the abuses of tax cheats by proposing taxation of income over $25 million and a billionaire minimum income tax. Both attempts failed.

All American citizens must pay their fair share, and right now the middle class is paying more than their fair share.

Julia Bojalad

North Huntingdon