Billionaires reduce income to lower taxes, living off appreciating assets. Study shows richest 20% less taxed than median household. Middle class pays 10-37% income tax rates. Billionaires pay lower rates on wealth, not income. Top 400 households pay 24%, rest 30%. Billionaires use equity, realize little taxable income.

Wealthy escape taxes by borrowing against assets, living “buy, borrow, die” lifestyle. Borrow against assets, enjoy non-taxed income growth. Assets transfer to heirs with step-up basis, avoiding capital gains tax. Equities as collateral allow favorable interest rates, tax-free loan proceeds. Ultra-rich strategies not easily replicated.

Reduce tax burden: maximize retirement contributions, donate stock for deductions, deduct real estate costs, hold assets in pass-through entities, harvest tax losses. Track and deduct interest, donations, and business expenses. Learn more: Best tax deductions to claim this year.

Read more at Yahoo Finance: How billionaires avoid paying income taxes