Ross Gerber Says Low-Interest Loans To The Ultra Wealthy Must Be Taxed. He Calls It 'The Great Tax Scam Of The Billionaires'
Ross Gerber Says Low-Interest Loans To The Ultra Wealthy Must Be Taxed. He Calls It 'The Great Tax Scam Of The Billionaires'
Adrian VolenikThu, February 26, 2026 at 8:00 PM UTC
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Gerber Kawasaki Wealth and Investment Management CEO Ross Gerber is calling for changes to how ultra-wealthy Americans use low-interest loans, arguing the system gives billionaires an unfair advantage.
His comments came after The Wall Street Journal published a detailed look at billionaire Leon Black's finances, including a $484 million loan backed by his art collection and dozens of bank accounts. The report showed how some of the wealthiest Americans borrow against valuable assets instead of selling them and paying capital gains taxes.
‘The Great Tax Scam Of The Billionaires’
“We must tax low interest loans to the ultra wealthy,” Gerber wrote on X last week. “This is the great tax scam of the billionaires. The banks make a ton off other services from these relationship loans. Billionaires pay no taxes and spend away…”
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Under current tax law, loans aren’t considered income because they must be repaid. That's why wealthy individuals can borrow against stock, art or other assets without triggering a tax bill.
One X user responded to Gerber's post by asking, “If it's a loan, why should they have to pay tax on it?”
Gerber's answer focused on the interest rate difference. “Because it’s an extra low interest. Lower than market rates,” he wrote. “They wouldn’t do it if they paid what we would pay in the same loan. They pay 2%. We pay 8.5%. Seems rigged.”
Another commenter brought up past examples of lower-rate home equity lines of credit and warned against turning the issue into “us versus them” politics. Gerber replied, “If they pay the rate we all pay fine. But that is not the case.”
At the center of the debate is what some call the buy-borrow-die strategy. Instead of selling assets and paying taxes, billionaires can borrow at very low rates, maintain ownership of appreciating assets and use the loan proceeds to fund their lifestyle. Critics argue that practice allows wealth to grow with minimal tax impact.
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A Different Tone On Taxes
Gerber's position has somewhat shifted in tone compared with the comments he made late last year.
“Why do politicians think the solution for every issue is more taxes,” he wrote. “Meanwhile they are the most inept, incompetent group in our society. They have plenty of money to solve every problem in the world and simply can’t execute solutions.”
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The broader conversation raises questions about fairness, tax policy and how wealth is managed at the highest levels.
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Immersed is currently allowing retail investors to participate in its pre-IPO round, subject to eligibility and offering terms.
While billionaires get art-backed loans and relationship banking, most families are focused on mortgages, retirement accounts and building steady wealth over time.
Gerber's comments add fuel to a long-running debate: whether ultra-low borrowing costs for the ultra-wealthy reflect smart financial strategy or a system that needs reform.
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This article Ross Gerber Says Low-Interest Loans To The Ultra Wealthy Must Be Taxed. He Calls It 'The Great Tax Scam Of The Billionaires' originally appeared on Benzinga.com
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Source: “AOL Money”
