Bloomberg: One of the wealthiest House Democrats will propose a bill Thursday that would edit the tax code to make it harder for ultrarich Americans to avoid paying taxes.
The legislation, led by Levi Strauss heir Rep. Dan Goldman (D-N.Y.), likely faces long odds in the GOP-controlled House. But Goldman says he believes it can attract bipartisan support because it closes a loophole without actually raising the tax rate on anyone.
Goldman’s bill would impose a 20% excise tax on loans and lines of credit backed by capital assets for individuals making more than $400,000 or joint filers making more than $450,000. The legislation would exempt home mortgages and some other loans. It aims to curb wealthy Americans from borrowing against their appreciating assets without cashing them out and paying capital gains taxes. Borrowed funds generally aren’t subject to income taxes.
Additional scholarship:
- Brian Galle, David Gamage & Darien Shanske, Solving the Valuation Challenge: The ULTRA Method for Taxing Extreme Wealth, 72 Duke L.J. 1257 (2023)
- Brian Galle, David Gamage & Bob Lord, Taxing Dynasties, 174 U. Pa. L. Rev. __ (2026)
