Rep. Dan Goldman, one of the wealthiest Democrats in Congress and heir to the Levi Strauss fortune, is calling out billionaires like Elon Musk and Jeff Bezos for paying extremely low tax rates.
In a post on X, he wrote: “Elon Musk paid an effective tax rate of 3.3%. Jeff Bezos paid 1%. How? They take out tax-free loans against their stock. Today, I’m introducing the ROBINHOOD Act to tax these loans and generate at least $276B for universal childcare and other programs to restore access to the American Dream. It’s time for billionaires to pay their fair share.”
Goldman is set to introduce a new bill aimed at taxing this strategy, which billionaires use to avoid paying income taxes.
Bill Targets Loans Against Stock Holdings
The proposed legislation, the ROBINHOOD Act (Redistribution of Billions by Instituting New High-Income Obligations on Overlooked Debt), would place a 20% excise tax on loans and lines of credit backed by capital assets.
It would apply to individuals earning more than $400,000 a year or joint filers earning more than $450,000.
The bill specifically exempts home mortgages and certain other types of loans.
The goal is to close a loophole that allows the ultrarich to borrow against their appreciating assets without selling them, effectively avoiding capital gains taxes.
Borrowed money is generally not considered taxable income, which allows billionaires like Elon Musk and Jeff Bezos to live off loans while their wealth grows untaxed.
“This Bill Would Raise Taxes on Me Personally”
Goldman, a multimillionaire himself, said he would also be affected by the bill. “This bill would raise taxes on me personally,” Goldman told Bloomberg.
“And I think it is exactly the type of policy that we need to be creatively thinking about how to make sure that we’re tackling wealth inequality.”
Groups such as Americans for Tax Fairness and Social Security Works have endorsed the proposal.
Despite support from progressive organizations, the bill is expected to face an uphill battle in the Republican-controlled House.
Goldman said he believes the legislation could win bipartisan support because it does not increase anyone’s tax rate directly, but instead targets a tax avoidance strategy. Still, its prospects are uncertain.
The proposal comes as Democrats push messaging that they are fighting for working families ahead of the 2026 midterms.
Many in the party have taken aim at President Donald Trump’s tax law, which cut taxes for the wealthiest Americans.
Meanwhile, Republicans have highlighted provisions like eliminating taxes on tips as part of their efforts to appeal to working-class voters.
Goldman’s bill marks another step in the ongoing debate over how to address growing wealth inequality in the United States.