On: Bezos donates $100M each to CNN contributor Van Jo...

[monocasa]

Your capital you used for collateral on the loans accrues value quicker than the loan's payments.

Hence that 1% effective rate.

[missedthecue → monocasa]

But eventually, you sell that capital to repay the loan, triggering a tax event.

[monocasa → missedthecue]

Except you had access to the capital the whole time via the loans, and only pay back according to the loan schedule, negating most of the tax burden.

Hence the 1% figure based on the numbers you yourself provided.

[missedthecue → monocasa]

In what way does that negate tax burden. You have to sell (some of) the assets to pay the loan you borrowed. That causes a tax to be paid.