Bill > HR6438

This bill, known as the ROBINHOOD Act (Redistribution of Billions by Instituting New High-Income Obligations on Overlooked Debt Act), introduces a new 20% excise tax on secured loans and lines of credit for high-income individuals. Specifically, the tax would apply to loans secured by capital assets for borrowers with an adjusted gross income above $400,000 (or $450,000 for joint returns), targeting wealthy individuals who take out loans against their investments. The tax would not apply to residential mortgage loans, home equity loans, margin loans, or loans secured by farmland. Borrowers would be responsible for paying the tax annually, which would be collected by the Internal Revenue Service. The bill aims to generate additional tax revenue from high-income individuals who use their assets as collateral for loans, potentially closing what some view as a tax avoidance strategy. The new tax would take effect for loans and lines of credit extended after the date of the Act's enactment, with the Secretary of the Treasury authorized to develop specific regulations for implementation.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6438/all-info