Some of the very richest Americans pay little in taxes compared with how fast their fortunes grow each year. How? They use a tax strategy known as "buy, borrow, die." It’s like the ultrawealthy are living on another planet. Average people need income to pay for basics like housing and food. But the ultrawealthy don’t. They can just live on borrowed cash. STEP ONE: BUY The ultrawealthy buy an asset or build a company or inherit a fortune. As long as they don’t sell, they owe no taxes. They keep their income as low as possible, since every dollar they earn can be taxed. STEP TWO: BORROW They borrow against their holdings, and the bank gives them a really good deal. "I’ll loan you $10 million with only 3% interest. But if you take a $10 million dollar salary from your company, you’ll owe almost 37% to the IRS." So the ultrawealthy use loan money to fund their lifestyles. That’s how a billionaire can live the most luxurious life imaginable, while reporting little to no taxable income. STEP THREE: DIE When they die, these lucky few often use complicated trusts and philanthropic foundations to avoid the estate tax. And their heirs can inherit stocks and other assets tax-free. A new generation is ultrawealthy, and the cycle starts all over again.