ROBINHOOD Act
Rep. Goldman Introduces ROBINHOOD Act to Tax Loans Used by Wealthy to Avoid Income Taxes
The ROBINHOOD Act was recently introduced in the House and is currently being reviewed by the Committee on Ways and Means. This is the first step in the legislative process, and there are no further actions scheduled at this time. The bill is considered active as it begins its journey through Congress.
Legislative Progress
This bill faces strong opposition from lawmakers who generally vote against tax increases. It is currently in a committee where most bills do not receive a vote.
Key Points
Impact Analysis
Personal Impact
Life & Work
High-income small business owners who borrow against investment portfolios or other capital assets to fund their businesses could face a 20% tax on those borrowed amounts. While many small business loans are structured differently, those who use personal capital assets as collateral and earn above $400,000 would be directly affected. This could increase the cost of accessing capital for growth or operations.
“means a loan or revolving credit arrangement secured by one or more capital assets (as defined in section 1221(a)) of an applicable borrower, under which the amount of the loan or available credit is based on the value of such asset”
Activities
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles
ROBINHOOD Act could generate $286B in excise tax revenue from wealthiest Americans
Brooklyn Congressman Dan Goldman introduced the ROBINHOOD Act, a federal tax on the ultra-wealthy. The bill would impose a 20% excise tax on loans backed by investments like stocks and real estate, potentially generating $276 billion over 10 years for childcare and universal pre-K.
Dan Goldman vows to keep his fellow 1 percenters in check
As part of his reelection launch, Rep. Dan Goldman touted his ROBINHOOD Act, which establishes an excise tax on loans backed by capital assets. The legislation is specifically aimed at a tax evasion maneuver used by the super-wealthy to avoid capital gains taxes.
NY Rep. Dan Goldman targets the ultra-rich with new ROBINHOOD tax bill
The ROBINHOOD Act targets a strategy where wealthy borrowers use assets like stocks to secure large credit lines without selling them, thus avoiding capital gains taxes. The bill charges a 20% excise tax on these loans but exempts home mortgages and farmland credit.
Source Information
Document Type
Congressional Bill
Official Title
ROBINHOOD Act
Data Sources
Sponsor
Cosponsors
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