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frogstar0

(264 posts) Fri Apr 17, 2026, 03:18 PM 17 hrs ago

Salaries are for suckers -- Our Tax System Should Make You Furious

Let’s focus on Jeff Bezos because he’s much more of a classic case. Jeff Bezos started his own business. He owns a dominant amount of the stock.

And over the course of the years, he has taken a salary that is no higher than $82,000. It’s been more than 20 years now, and his salary is always capped at $82,000.

You might say: Well, why would it be? He started the company — he’s the man. Why isn’t he taking a huge salary to reflect all that he put into the company?

The reason is: Salaries are for suckers. When people take a salary, they’re subject to high income taxes and payroll taxes, and Jeff Bezos and a lot of our other multibillionaires have no interest in paying those taxes.

So instead, they take their benefits through the growing value of their stock — and their stock has grown enormously. And that massive growth of stock happens entirely tax free — with no time frame under our current system in which that stock will ever be subject to tax.

That is because we only impose a tax if the stock is sold, and Bezos never has to sell the stock because he can simply borrow against the stock and use that money to support his lifestyle and to pay any interest that’s due on the loan.

https://www.nytimes.com/2026/04/17/opinion/ezra-klein-podcast-ray-madoff.html?unlocked_article_code=1.blA.F-pW.Om--tFq-EBet&smid=url-share

4 replies

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Salaries are for suckers -- Our Tax System Should Make You Furious (Original Post) frogstar0 17 hrs ago OP

Congress is responsible for the tax code MichMan 16 hrs ago #1

Nice work if you can get it. Disaffected 15 hrs ago #2

Lets take it to the next long term impact FHRRK1 14 hrs ago #3

Another feature is deductibility and accelerated depreciation lostnfound 13 hrs ago #4

MichMan

(17,233 posts)

1. Congress is responsible for the tax code

Reply to frogstar0 (Original post)

Fri Apr 17, 2026, 03:41 PM

16 hrs ago

They could have changed this years ago if they so desired

Disaffected

(6,475 posts)

2. Nice work if you can get it.

Reply to frogstar0 (Original post)

Fri Apr 17, 2026, 04:51 PM

15 hrs ago

And most of us can't.

Come to think of it, most of us wouldn't freeload like Bezo and his buds.

FHRRK1

(48 posts)

3. Lets take it to the next long term impact

Reply to frogstar0 (Original post)

Fri Apr 17, 2026, 05:26 PM

14 hrs ago

When Bezos dies the stock will be revalued to current Fair Market Value.

So Amazon is at $250 today, to keep it simple, let's say he got all that stock @ $100 and passes today.

That $150 increase is transferred tax free.

Then the heirs then get to revalue the stock @ $250. (date of passing) If you are really really rich (which they are) you can even pick a point up to six months after the death.

And for the next step, let's say a couple of years from now an heir is running up to big of a tax bill on his/her other income, and the stock has dropped to $150. The heir can sell shares AND claim a $100 per share loss on the stock.

So in summary, 100,000 shares bought at $10,000,000

Value today, $25,000,000

$15,000,000 tax free

Heir gets starting point of $250 per share

Stock drops to $150 next year

Heir sells 1/4 if the tax free inheritance, $3,750,000 proceeds AND gets a $2,500,000 deduction! Remaining value of the stock is $11,250,000.

Great scam isn't it.

lostnfound

(17,549 posts)

4. Another feature is deductibility and accelerated depreciation

Reply to FHRRK1 (Reply #3)

Fri Apr 17, 2026, 07:18 PM

13 hrs ago

In order to exist as a person, you rent a house, eat food, buy a car, pay for auto and home insurance, and much more. You buy airplane tickets to travel. After you pay for all that stuff, you have $10,000 of your $100,000 income left over.
None of that is deductible. There’s a 100 of you x $100,000 per year income. You are each taxed on most of that $100,000, and collectively on most of $10 million.

As a company, you might rent a building, buy fuel and materials, pay for cars, insurance and much more. You deduct it all from your $10 million of gross revenue. Maybe you have $3 million left over on which you might have to pay taxes. So you buy a private jet for $3 million. You get ‘bonus depreciation’ all in one year. Presto, there are no taxes.

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