Nvidia CEO is evading $8B federal taxes using loopholes

Jensen Huang, the CEO of Nvidia, has found ways to avoid paying around $8 billion in estate taxes, taking advantage of loopholes in the federal estate and gift tax system, reports the New York Times.

These tax loopholes have become more prevalent as rules surrounding them have been quietly relaxed in recent years.

Huang, 61, is the 10th wealthiest person in the US. His net worth is $127 billion, and he is supposed to pay 40% of it upon his death.

To bypass this hefty tax, Huang has used strategies like transferring assets into irrevocable trusts and setting up charitable foundations, making his wealth less taxable.

The approach is shared among the ultra-wealthy and has been used by other top figures, including Facebook founder Mark Zuckerberg and Blackstone Group’s Stephen Schwarzman, who employ similar tactics to shield their fortunes.

While such methods are legal, they are controversial.

Critics argue that they contribute to growing wealth inequality, as they enable the wealthiest individuals to avoid paying taxes, depriving the government of crucial revenue.

The gap between the wealthiest individuals and the rest of the population continues to widen, with the tax system often favoring those with the resources to exploit these strategies.