New 20% tax on asset-backed loans targets wealthy borrowers
H.R. 6438 — ROBINHOOD Act · Filed by Dan Goldman (D-NY) · 11 cosponsors · Introduced Dec 4, 2025 · Referred to committee
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What it does
This bill imposes a 20% annual excise tax on secured loans and lines of credit (such as loans backed by stocks, bonds, or other investment assets) taken out by individuals earning over $400,000 per year ($450,000 for joint filers). The tax applies to the amount borrowed each year and is paid by the borrower. It explicitly excludes residential mortgages, home equity loans, margin loans, and farm-secured loans.
Why we flagged it
The bill creates a new excise tax specifically targeting a financing strategy used by high-net-worth individuals—borrowing against securities and other capital assets to access liquidity without triggering capital gains tax. This is a revenue-raising measure aimed at closing a perceived tax-avoidance loophole.
What the text implies
- The 20% tax is imposed on the AMOUNT BORROWED, not on gains or income—meaning a borrower who borrows $1M against appreciated stock owes $200k in tax that year, regardless of whether they realize any income. This creates a cash-flow burden distinct from traditional income tax.
- Lenders may respond by raising interest rates, tightening credit, or refusing to offer such loans to affected borrowers, potentially reducing access to liquidity for high-income individuals and affecting lending markets.
The full analysis lists 4 implications of this text.
Who stands to gain
U.S. Treasury (revenue collection); Federal government programs funded by excise tax revenue