Jeff Bezos Calls Out ‘Buy, Borrow, Die’ Strategy, Denies That It Helps Billionaires Like Himself Avoid Taxes – AfroTech
Amazon founder Jeff Bezos is disputing claims surrounding the controversial “buy, borrow, die” tax strategy often associated with ultrawealthy investors and founders seeking to minimize taxes.
During an interview on CNBC on Wednesday, May 20, 2026, Bezos called the strategy a myth.
“There’s no truth to this ‘buy, borrow, die’ thing,” Bezos said. “I don’t even know where this comes from.”
What Is The ‘Buy, Borrow, Die’ Tax Strategy?
A 2019 study by economists Emmanuel Saez and Gabriel Zucman found that, for the first time in modern history, the wealthiest Americans may be paying a lower effective tax rate than middle- and working-class households, AFROTECH™ previously reported.
In 2018, the study noted the average effective tax rate paid by the top 400 richest U.S. families was reportedly 23%, compared with 24.2% paid by the bottom half of households.
The strategy “Buy, borrow, die” refers to a wealth-preservation tactic that allows wealthy individuals to avoid triggering capital gains taxes by borrowing against their stock holdings instead of selling them, CNBC noted. Because loans are not considered taxable income, they can access cash through low-interest borrowing secured by their assets while continuing to hold them. When assets are eventually passed to heirs, they may receive a step-up in basis tax provision, which can significantly reduce or eliminate capital gains taxes on any appreciation.
Democrats Criticize Jeff Bezos’ Tax Practices
Bezos’ comments on CNBC come amid criticism from Democrats, including Massachusetts Senator Elizabeth Warren, who has proposed targeting the practice by taxing wealth instead of income.
“Jeff Bezos has $222 billion. If he paid my wealth tax this year, we could fund insulin in America for everyone who needs it, plus free school lunch for every kid in Texas—and have plenty of money left over. And Bezos would still have $215 billion dollars to spare,” Warren wrote in a post on X on April 5.
Warren also criticized Bezos on social media after the 2026 Met Gala, which he sponsored, and later reiterated those criticisms in a May 16 Instagram post.
“Jeff Bezos pays a lower marginal tax rate than a Boston public school teacher, and that is fundamentally wrong,” Warren said. “So how does Jeff Bezos and other billionaires like him get away with not paying their fair share in taxes?… Well, rich people like him can borrow the money from banks, and those banks will loan them just about anything because they know those guys are super wealthy.”
As AFROTECH™ previously shared, Bezos founded Amazon, the world’s largest company by revenue, in 1994. According to Forbes, he ranks as the world’s fourth-richest person, with an estimated net worth of about $270.6 billion.
Bezos said he pays taxes whenever he sells shares of Amazon stock to help finance Blue Origin and his other business ventures, CNBC reported.
He added that he could support reforms aimed at limiting the tax strategy. However, he argued that eliminating the loophole alone would not fully address issues surrounding government spending, economic inequality, and aid for lower-income Americans.
“I’m a little skeptical that that’s a true loophole,” Bezos said on CNBC. “But if it is, and we can fix it, then we should. I don’t think such a loophole should exist.”
