Billionaires like Elon Musk Jeff Bezos and Michael Bloomberg have a secret They paid little to no federal income taxes over several years a ProPublica analysis shows Tax Secrets How The Rich Avoid Paying Taxes this reveals the complex legal strategies the wealthy use to cut their taxes They take advantage of loopholes and the tax code's complexity Key Takeaways Wealthy individuals use legal methods to lower their taxes They avoid traditional salaries and use tax differences They also use tax-exempt charities Billionaires like Elon Musk and Jeff Bezos often have low base salaries Their wealth mainly comes from stock ownership not income The rich use the tax code's details to pay less For example they pay lower rates on long-term capital gains than short-term gains They use tax-loss harvesting and treat personal luxuries as business expenses to cut taxes Philanthropic donations and tax-exempt organizations help the rich lower their taxes They also improve their public image Don't Take a Paycheck Billionaires like Elon Musk and Jeff Bezos don't get paid in the usual way Most of their money comes from owning stocks not from a salary This smart move helps them pay less in taxes because stocks are only taxed when sold They get paid in stock options and awards instead of a salary This way their wealth grows without being taxed as income By doing this billionaire salaries are kept very low This helps them avoid income tax and make the most of their stock-based compensation BillionaireSalaryNet WorthElon... Login to read full