Elon Musk says Americans ‘get the living daylights taxed out of us.’ Here's how he avoids taxes to hold onto his wealth

Elon Musk says Americans ‘get the living daylights taxed out of us. ’ Here's how he avoids taxes to hold onto his wealth Jing Pan Tue, June 23, 2026 at 5:20 PM GMT+2 10 min read TSLA Andrew Harnik/ Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. They say the only certainties in life are death and taxes — but Tesla CEO and world's first trillionaire Elon Musk thinks Americans are getting far more than their fair share of the latter.

"You get taxed on what you earn, you get taxed on what you buy and you get taxed on what you own. Taxes, taxes, taxes," Musk said at a town hall in Pittsburgh (1). Top Picks Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here's how to fix it ASAP JP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill.

Get your free guide from Priority Gold The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100 In broad terms, he's not wrong. Most Americans pay income tax on their wages and salaries, most states impose sales tax on goods and services, and homeowners shoulder property taxes on real estate. Layers of taxation touch just about every part of daily life.

Musk didn't mince words about how harsh he believes the tax landscape has become: "We get the living daylights taxed out of us. " And he's equally blunt about how that money is spent. "What does it get spent on?

A bunch of the stuff it gets spent on you don't even agree with," he explained. "That's why we need to reduce the size of the government ... and let the people keep a lot more of their hard-earned money.

" To be sure, taxes help fund crucial public services, such as education, health care, emergency services and infrastructure. But the system Musk described can still leave many Americans wondering what realistic options they have for building wealth when every dollar earned, spent and owned seems to face another levy. That frustration isn't limited to tech CEOs.

Scott Galloway, a renowned professor of marketing at NYU Stern School of Business, has openly argued that if you want to build wealth, you should lower your tax bill as much as possible. "Tax avoidance is a key skill to building wealth," Galloway said on Steven Bartlett's podcast, The Diary of a CEO (2). Galloway offered a striking comparison: "If you're a prisoner of war, you have an obligation to escape.

If you're trying to build wealth, you have an obligation to pay as little tax as possible. " "Do it legally," he adds. But that's easier said than done.

If you're starting to feel like a prisoner of taxes and are looking for a way to escape, here are some strategies to minimize their hold on you. Story Continues Prof G: 'You never sell them' When asked about the specific tax strategies employed by the wealthy, Galloway didn't hesitate. "First and foremost, it's you buy stocks, you never sell them, you borrow against them," Galloway said.

He then explained how this strategy works. "You own $100 in Amazon stock. You need money to buy something.

Instead of selling the stock and, let's say it's gone up 50% ... You would have to realize a capital gain and pay long-term capital gains on that $50 gain. "No, just borrow against it and let the stock continue to grow.

And you pay a little bit of interest, hopefully from your current income. But basically, it's invest, borrow against it and die. Put it into a trust and then pass it on to your kids.

" Indeed, this approach lets wealthy investors unlock liquidity without creating a taxable event, allowing their assets to keep compounding over time. The interest paid on the borrowed amount is often modest relative to the tax liability they'd face if they sold — which is why the strategy has become a widely used method for preserving wealth. Save on taxes by investing in this skyrocketing asset Holding onto stocks is one great way to preserve wealth, but so is investing in gold.

And with Gold's stellar performance in 2025 and 2026, many investors are hoping to cash in on this sparkling asset in a big way. However, newbies to the market may not realize there are also plenty of tax benefits to owning the yellow metal. Holding physical gold for a year or more can qualify you for long-term capital gains, and investing in gold ETFs or mining stocks generally offers a more favorable tax treatment when compared to physical assets (3).

Many investors also look to invest in gold through an IRA in order to gain the tax benefits of these accounts. One way to invest in gold that also provides these significant tax advantages is to open a gold IRA with the help of Priority Gold . Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold .

This can make it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties. To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases. Just keep in mind that gold is often best used as one part of a portfolio.

Read More: Thanks to Jeff Bezos, you can become a landlord for $100 — without the headache of actually being one Robert Kiyosaki: 'I make a lot of money and pay no tax' Galloway's "buy, borrow, die" approach isn't confined to stocks or gold IRAs. Real estate investors have been applying a similar playbook for decades — often from the moment they purchase a property, as most acquisitions start with a mortgage. It's a strategy Robert Kiyosaki, author of Rich Dad, Poor Dad , knows well.

"We're always buying real estate because we use debt — and we pay no tax legally," Kiyosaki said in a recent podcast appearance, where he disclosed that he's carrying $1. 2 billion in debt (4). His point comes down to tax treatment.

When investors acquire real estate with borrowed funds, the interest payments on those loans are often tax-deductible — even when the properties themselves generate positive cash flow. That allows investors to legally reduce their tax burden while putting leverage to work. Kiyosaki takes the strategy to an extreme scale.

"I own hotels today and 15,000 rental properties — and make a lot of money and pay no tax. I love it," he revealed. Real estate can be a powerful wealth builder, offering rental income, potential long-term appreciation and tax advantages — from depreciation to 1031 exchanges — that help investors keep more of what they earn.

But leveraging large amounts of debt comes with real risks. Borrowing magnifies outcomes in both directions: A downturn in the market, rising interest rates or unexpected expenses can quickly turn comfortable leverage into a strain, especially for investors without deep experience or diversified cash flow. The good news?

You don't need to be as wealthy as Kiyosaki — or take on massive debt — to start investing in real estate. Earn a passive income with real estate Real estate has long been one of America's most reliable wealth builders — but until recently, it's been hard to invest in it without buying property outright or competing with institutional players. New real estate investment platforms like mogul offer fractional ownership in blue-chip rental properties , without the need for putting down a hefty down payment or or fielding late-night calls from unruly tenants.

Simply put, you can invest in institutional-quality offerings for a fraction of the usual cost — in both money and time. Founded by former Goldman Sachs real estate investors, mogul handpicks the top 1% of single-family rental homes nationwide for you. Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios, but the platform features an average annual IRR of 18.

8% across the board. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. With investments typically ranging between $15,000 and $40,000 per property, offerings often sell out in under three hours .

The best part is that getting started is a quick and easy process. You can sign up for an account and then browse available properties within minutes. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

But residential real estate is only one slice of the real estate landscape. If you want to get into other typologies there are options, provided you have the capital on hand. For example, class B is a type of real estate asset class that tends to perform steadily through market cycles, supported by a broad tenant base and sustained demand for quality, affordable space.

In times of volatility, they often benefit from renters "trading down" from higher-cost options, while limited new supply keeps vacancies in check. Low tenant turnover and long leases can also lead to consistent net operating income and stable, robust cash flow for Limited Partner investors. Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT , which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT lets individual investors tap into the institutional approach of Lightstone, one of the largest privately held real estate investment firms in the U. S. , with $12 billion in assets under management.

The platform eliminates middlemen and the extra layers of fees that can add up in traditional real estate investing, usually known as "fee stacking. " This streamlined approach provides more direct access to institutional-quality deals. Over nearly four decades, Lightstone has delivered strong risk-adjusted performance — including a 27.

6% historical net IRR and a 2. 54x historical net equity multiple on realized investments since 2004. Each opportunity requires a $100,000 minimum and undergoes a rigorous review by Lightstone's principals, including founder David Lichtenstein.

Lightstone also invests at least 20% of its own capital in every deal — roughly four times the industry average. With skin in the game, the firm ensures its interests are directly aligned with those of its investors. Consult a professional At the end of the day, though, everyone's financial situation is different — from income levels and investment goals to debt obligations and risk tolerance — which means the best move for someone else might not be the best one for you.

This is especially true for those with large portfolio. The more money you have, the better your gains can be through compounding. However, this also means you need to be careful — both in terms of mitigating risk and minimizing your taxable burden.

If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning. Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.

You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals. WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.

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@MAGNONEWS ( 1 ); @TheDiaryOfACEO ( 2 ); Journal of Accountancy ( 3 ); @hannahbhammond ( 4 ) This article provides information only and should not be construed as advice. It is provided without warranty of any kind.