Congressman Dan Goldman (NY-10) has introduced the ROBINHOOD Act, a bill targeting the ultra-wealthy’s use of borrowing schemes to avoid paying taxes on capital gains. The legislation proposes a 20% excise tax on loans and lines of credit secured by capital assets for high-income earners. This initiative aims to generate at least $276 billion over ten years by making the wealthiest individuals contribute their fair share, with potential revenues earmarked for investments in universal pre-K and childcare programs. The act seeks to address the current tax code’s shortcomings, where the ultra-wealthy are able to avoid taxes while accessing massive sums of money.
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In 2024, Tesla reported $2.3 billion in U.S. income but paid zero federal income tax, a trend reflecting a three-year total of $10.8 billion in U.S. income taxed at only 0.4%. This remarkably low tax rate resulted from utilizing various tax strategies, including accelerated depreciation, stock option tax breaks, and unspecified U.S. tax credits. Furthermore, the company leveraged net operating losses to offset income, and potential future tax savings are looming with proposed legislation that could provide additional substantial benefits.
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Tesla reported $2.3 billion in income in 2024 yet paid zero dollars in federal income taxes, utilizing accelerated depreciation and unspecified tax credits. This follows a trend of minimal tax payments in previous years, resulting in a three-year average tax rate of 0.4 percent—significantly lower than the 21 percent statutory corporate rate. The company’s tax avoidance strategies highlight loopholes within the U.S. tax system, which disproportionately benefit corporations and the wealthy. These practices have allowed Tesla, despite its immense valuation, to significantly reduce its tax burden.
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John Q. Hosedrinker