This bill, called the ROBINHOOD Act, would add a new excise tax on certain secured loans and lines of credit. The tax would be 20 percent of the amount borrowed during the taxable year. The borrower must pay the tax, and the Treasury Secretary would collect it annually. The bill defines covered loans as those secured by one or more capital assets where the loan amount or available credit is based on the asset's value. The bill excludes residential mortgages, home equity loans and lines, margin loans, and loans secured by farmland. The tax applies only to individuals with adjusted gross income over $400,000 (or $450,000 for joint filers). The law would apply to loans and lines of credit made after the law takes effect. The bill was introduced in the House on December 4, 2025, and referred to the Committee on Ways and Means.
If you are an individual whose adjusted gross income is above $400,000 (or $450,000 for joint filers) and you take out a covered secured loan or line of credit after this law is enacted, you would owe an excise tax equal to 20% of the amount borrowed for the year. If your loan is a residential mortgage, home equity loan or line, margin loan, or a loan secured by farmland, this bill says those loans are not covered. If your income is below the thresholds, the bill does not apply to you.
The bill sets the tax rate at 20% of the amount borrowed during the taxable year and requires the borrower to pay the tax. The Secretary of the Treasury would collect the tax annually and may issue regulations or guidance to implement the rule. No publicly available information about estimated revenue effects or administrative costs is included in the bill text.
The bill states its purpose is "to ensure high-income individuals pay their fair share of taxes." Proponents would point to the new excise tax and the income thresholds as the mechanism to meet that stated purpose.
No publicly available information.