Buy, borrow, die

Why the largest fortunes can go untaxed — and what accrual would change

Annual appreciation 10%

Years held until death 20

Gain over life—

Tax: buy-borrow-die—

Tax: realize at death (no step-up)—

Tax: annual accrual—

Per $1,000 invested. "Buy-borrow-die" = borrow against the appreciated asset, never sell, and the heir's basis steps up at death (IRC §1014) — the gain is never taxed as income. Accrual taxes each year's gain.

Sources: Federal Reserve Distributional Financial Accounts (DFA) & SCF; Saez-Zucman / Realtime Inequality; Wyden Billionaires Income Tax; Treasury Greenbook. Figures illustrative — see SOURCES.md & methods.