Levi’s Heir in Congress Pushes End to Tax Loophole for Ultrarich

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. It also comes as Goldman stares down a potential progressive challenger in Comptroller Brad Lander, a Mayor-elect Zohran Mamdani ally who’s reportedly weighing a run.

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.

“This bill would raise taxes on me personally,” said Goldman, a multimillionaire. “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 including Americans for Tax Fairness and Social Security Works have endorsed the bill, dubbed the ROBINHOOD (Redistribution of Billions by Instituting New High-Income Obligations on Overlooked Debt) Act.

Democrats in Congress are increasingly trumpeting plans to tax large corporations and billionaires, painting themselves as advocates for working families ahead of the 2026 midterm elections. Progressive darling Sen. Bernie Sanders (I-Vt.) has traveled to more than a dozen states for his Fighting Oligarchy tour, featuring Mamdani and a handful of left-aligned lawmakers.

A main aspect of Democrats’ argument is railing against President Donald Trump’s signature tax and spending bill, which delivered major tax breaks for the wealthiest income bracket. Trump and congressional Republicans have emphasized provisions like no tax on tips, which they say help working-class Americans.