How the Rich Legally Pay Less Tax Than You

Two people each make $75,000. One pays about $13,400 in federal tax, the other about $1,400. Both are legal. This video opens the box on six ways wealthy Americans legally lower their tax bill (capital gains rates, unrealized gains, borrowing against assets, the step-up in basis, business deductions and tax-advantaged accounts), then shows the four versions an ordinary earner can use, including the 0% long-term capital gains bracket. US federal rules, tax year 2026. Legal tax avoidance only. Tax evasion is a crime and is not covered or encouraged. CHAPTERS 0:00 Same $75,000, very different tax 0:19 Avoidance vs evasion 1:06 1. Wages are taxed the hardest 3:23 2. No sale, no tax 4:31 3. Borrow instead of sell 5:16 Buy, borrow, die 5:47 4. The step-up in basis 6:45 5. Businesses are taxed on profit 7:32 6. The versions an ordinary earner can use 10:27 Copy the structure Which of these rules did you not know existed? Tell us in the comments. SOURCES (figures checked 9 October 2026) 2026 brackets, standard deduction, estate exclusion: IRS newsroom, tax inflation adjustments for tax year 2026 (IR-2025-103) 2026 capital gains thresholds: IRS Revenue Procedure 2025-32 Capital gains, net investment income tax, dividends, Additional Medicare Tax: IRS Topics no. 409, 559, 404, 560 Payroll tax rates: IRS Topic no. 751 Social Security wage base 2026 ($184,500): Social Security Administration, contribution and benefit base The 25 richest Americans and the 3.4% figure: ProPublica, "The Secret IRS Files" (2021) Basis of inherited property: IRS Publication 551 401(k) and IRA limits 2026: IRS newsroom HSA limits 2026 and rules: IRS Revenue Procedure 2025-19, IRS Publication 969 Assumptions: all examples are federal only, single filer, standard deduction, no credits, no state tax. The 30-year projection assumes an 8% average annual return, which is not guaranteed, and unchanged tax rules. Dana and her neighbor are fictional. This video is for education only. It is not tax, legal, or financial advice. Tax rules change; check current IRS guidance or a qualified professional. This video uses a synthetic voice. Stock footage: Coverr (free licence). Music: "Digital Clouds" (Mixkit).