New 20% tax on asset-backed loans targets wealthy borrowers

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 $400k/$450k AGI threshold is fixed and not indexed to inflation, so over time more middle-class borrowers may be caught by the tax as nominal incomes rise.
• The exclusion of margin loans is notable—margin borrowing is a primary vehicle for the 'buy, borrow, die' strategy; excluding it may signal the bill targets a narrower category of secured lending (e.g., securities-backed loans from banks) rather than the full universe of asset-backed borrowing.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill targets a specific tax-avoidance strategy used by wealthy individuals (borrowing against appreciated assets to avoid capital gains tax) and would raise revenue that could fund public services. However, the mechanism may affect middle-class borrowers near the threshold, and the tax's actual incidence depends on whether lenders pass costs to borrowers or absorb them, creating uncertainty about who ultimately bears the burden.

Who stands to gain

• U.S. Treasury (revenue collection)
• Federal government programs funded by excise tax revenue

Named in the bill

Internal Revenue Service (IRS), U.S. Treasury, High-income individuals (AGI >$400k/$450k), Banks and lenders offering secured loans

Where it stands

11 cosponsors: 11 Democrats.

• Dec 4, 2025 — Introduced · Congress.gov: “Introduced in House”
• Dec 4, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

5 lobbying clients named this bill on 6 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $2,240,000 in lobbying spend. A filing names 24 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 78% of bills with at least one filing.

Dan Goldman, the sponsor, reported $407,029 in PAC receipts in the 2026 cycle.

• Finseca — $1,080,000 on 2 filings
• American Federation of State County and Municipal Employees — $690,000 on 1 filing
• American Federation of Teachers — $410,000 on 1 filing
• New Venture Fund — $40,000 on 1 filing
• Social Security Works — $20,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.