Investors Anthony Scaramucci and Mike Novogratz acknowledged a growing frustration around how the wealthy are taxed and why many Americans feel the system isn’t fair.
In a recent episode of their “All Things Markets” podcast, Scaramucci started by defending high earners like himself. “I pay my taxes. I’m a New York resident. I love New York. I don’t b**** or complain,” he said. “I just want to point out to everybody, 1% of the people are paying 48% of the taxes.”
But he admitted the frustration people feel is understandable given how the system works.
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Tax System Rewards Those Who Know How To Use It
Novogratz took the point further, arguing that the issue isn’t just about tax rates, but how easily they can be avoided by those with the right knowledge and structure in place.
“The tax code is so easy to crack,” he said. “Nobody I know who has real wealth will pay an inheritance tax.”
According to Novogratz, wealthy individuals often rely on tools like trusts and estate planning strategies to legally reduce their tax burden. “They will have set up a GRAT and a trust and they’ve moved money,” he said, referring to grantor retained annuity trusts that are commonly used to transfer wealth.
He also pointed to real estate incentives written into the tax code, such as accelerated depreciation, as another way the wealthy minimize taxes. “Those are gigs that got put into the tax code by rich people looking to pay less tax,” he said.
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The result, he added, is a system where outcomes vary widely even among people at the same level of wealth.
“What pisses me off is that the tax code isn’t fair within brackets. You can have six billionaires sitting around a table who pay six dramatically different levels of tax,” Novogratz said. “If we decide billionaires should pay 50% in tax, they all should pay 50% in tax.”
He said it shouldn’t be a system where a real estate billionaire can pay close to zero while a W-2 earner like a performer ends up paying about half, calling that unfair.
Inequality And Fairness Concerns Grow
Both investors agreed that the uneven structure contributes to rising inequality. While top earners continue to get wealthier, the gap between them and everyone else keeps widening.
“We’ve gotten to the point of inequality that just doesn’t make any sense for our country,” Novogratz said. “It doesn’t make any sense for any country.”
The Real Tax Advantage Is Strategy
As Scaramucci and Novogratz point out, the difference often isn’t just how much you earn—it’s how well your financial strategy is structured. Many of the tax advantages used by high-net-worth individuals come down to planning ahead, coordinating income, and understanding how each decision impacts future returns.
For investors looking to take a more proactive approach, reviewing your most recent tax return can be a starting point. …
This post was originally published here
