Rep. Dan Goldman on new bill that aims to tax the ultrawealthy

Proposed Legislation: The Robin Hood Act - The Robin Hood Act aims to impose a 20% tax on loans and lines of credit backed by capital assets like stock shares and real estate for wealthy Americans [1] - The bill targets individuals with income between $400,000 and $450,000 who take out loans against their stock holdings, although the primary focus is on billionaires [5] Rationale for the Bill - The bill addresses wealth inequality by targeting the practice of borrowing against assets to avoid paying taxes, a strategy used by some of the wealthiest individuals [2][3][8] - Current tax system allows some billionaires to have very low effective tax rates (e.g., Jeff Bezos at 1%, Elon Musk at 3%) by borrowing against their stock [3] - Existing methods of taxing wealth, such as marginal tax rates, wealth taxes, or taxing unrealized gains, are considered complicated and difficult to implement [4] Potential Impact and Revenue - Projected revenue from the bill is estimated to be close to $300 billion over 10 years [9] - The revenue could be used to fund universal child care, universal pre-kindergarten for four-year-olds, and expanded child tax credits [10] Concerns and Considerations - Concerns exist that the bill could stifle growth and innovation for entrepreneurs who have their money tied up in new private companies [7] - There are concerns about the impact on doctors, lawyers, and small business owners who borrow against their stock holdings [5] - Margin loans used to buy stock are exempted from the tax [6] - A city tax is not supported because it may push more people out and generate less revenue [11][12]