CAPITOL HILL — A NEW BILL THAT BROOKLYN CONGRESSMAN DAN GOLDMAN, D-10, HAS INTRODUCED would tax the wealthiest Americans, and could generate more than $276 billion in revenue.
Rep. Goldman, whose district includes much of western Brooklyn, on Thursday, Dec. 4, introduced the Redistribution of Billions by Instituting New High-Income Obligations on Overlooked Debt (ROBINHOOD) Act, a new federal tax on the ultra-wealthy. The bill addresses what he asserts is a glaring failure in the current tax code: the ability of the ultra-wealthy to gain more income while paying extremely low effective tax rates.
The ROBINHOOD Act, which would apply to individuals making over $400,000 a year ($450,000 for joint filers), would impose a 20% excise tax on loans and lines of credit backed by capital assets or investments such as stocks, bonds, private equity, inter-collectibles, real estate, digital assets, trusts and other similar instruments. Conservative estimates indicate this new tax could generate at least $276 billion over 10 years, which could be applied to the American Rescue Plan’s childcare investments, or universal pre-k.
The ROBINHOOD ACT does provide for exemptions for home mortgages, home equity loans and lines of credit, margin loans and credit secured by farmland.
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