Buy Borrow Die Tax Loophole Debate | Sacramento News

Sacramento News Today | 2 Min News | The Daily News Now! · Jul 1, 2026 · 1m

A controversial tax strategy called “buy, borrow, die” is sparking political fire, with California’s Governor Gavin Newsom calling it a loophole letting the ultra-rich dodge taxes by borrowing against assets instead of selling them—then passing them to heirs with a fresh tax basis. While figures like Elon Musk and John Malone are rumored to have used it, experts argue the tactic isn’t as widespread as claimed, with many wealthy families simply letting investments grow tax-free over time. The debate fuels calls for new taxes—including wealth taxes on unrealized gains—and intensifies the…