I was watching something on TV the other day and the host was talking about how we get away from paying taxes on stocks that we own. But certain individuals are able to borrow, and even get other investors to invest, against the same stocks that they are not paying taxes on.

At the face of it this sounds very wrong and should not be allowed. But first – this is not illegal, at least I am assume it is not. And the host is not directly saying that this is illegal. But depednig on how you listen to it, it might seem like that is what is saying and you could be influenced to think the same. But if you think it thru – the reason the individual is not required to pay tax on stocks that any of us won is because we decided that is a way ti incentivise business to be stablished. Those businesses will employ people, produce goods / services and those will be in the overall benefit of us.

The fact that other individuals and financial institutes are will to give the owner of those same stocks more money is really something that they are doing for the benefit of making more profit for their money. If / when they make a profit they will be required to pay taxes.

– manzoor