The ROBINHOOD Act would impose a 20 percent federal excise tax on secured loans and lines of credit used by high-income individuals. The tax applies to borrowers with adjusted gross income over $400,000 ($450,000 for joint filers) who borrow against capital assets like stocks or investment property, though it specifically excludes residential mortgages, home equity loans, margin loans, and farm-secured loans. Borrowers would be responsible for paying the tax annually to the Treasury Department. The bill would take effect for any loans or credit arrangements extended after it becomes law. According to its stated purpose, the legislation aims to ensure wealthy individuals pay their fair share of taxes by taxing a financing method some high-net-worth people use to access capital while potentially minimizing their tax obligations.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.