Transcript for readability:

Once, Blattmachr devised a way that Bill Gates, the richest man in America, could reap $200 million in profits on Microsoft stock without paying the $56 million of capital gains taxes that federal law required at the time. The plan was so lucrative that Gates would not have to pay a single dollar in tax and would even be entitled to an income tax deduction of $6 million or so. And that was just the initial plan. The concept could be applied endlessly, allowing Gates to convert billions of dollars in Microsoft stock gains into cash over the years. So long as the Internal Revenue Service did not challenge the deals, then Gates could realize unlimited capital gains without the pain of taxes.

The trick was in manipulating charitable trusts, a common enough device used by generous people who own an asset, such as stock or a building that has appreciated in value. Instead of selling the asset and investing the after-tax proceeds, an individual or a married couple can donate the asset to a charitable trust that they control. The trust sells the asset tax-free and invests the proceeds, giving the donating individual or couple a lifetime income, typically 6 percent per year. When the donors die, what remains in the trust, typically half its value, goes to charity.

Blattmachr’s plan was to take back not 6 percent annually for life, but 80 percent per year for two years. Gates could have pocketed at least $192 million without paying any tax. Then the trust would fold and a charity would get the remaining sum, less than $8 million. Under the plan Gates could have converted into cash more than 96 percent of gains on the Microsoft shares he donated, not the 72 percent he was entitled to after federal capital gains taxes. The charity would get less than four cents on each donated dollar. The government would collect nothing.

The scheme even created a tax deduction that was enough to reduce Gates’s income taxes by about $2 million.

Whether Gates took advantage of such a plan is not known for sure because the law makes individual income tax records confidential. What is known is that when Blattmachr made this route available to others, it sold like a treasure map where X marks the tax-free spot. Billions of dollars of assets poured into these short-term charitable

Well, any tax shenanigans is “easy” because they ain’t doing their own taxes.

And the more they have to gain, the more they’ll pay an accountant.

The book summarizes it as a “deal” but doesn’t say how many hours it takes a six figure account to fanagale into “legal”.

But even if Gates had to pay a team of ten for a whole year to pull it off, it’s a lot better than 56% in taxes on $200 million.

Not all of them will do it, but most people with that level of wealth got there by always making the choice that prioritizes profits over anything.

Lots of politicians know and admit those are bullshit…

Like most issues, it would be solved if at least one of the only two parties was progressive.

Neoliberals and republicans uniting to fuck over the average American, doesn’t mean the average American will always lose.

Just means we have a bunch of politicians to replace.

30% of all jobs aren’t related to paying taxes.