New 20% Excise Tax on Asset-Secured Loans for High-Income Earners
This bill introduces a new 20% excise tax on specific loans and lines of credit secured by capital assets, targeting high-income individuals. The tax applies only to borrowers whose adjusted gross income exceeds $400,000 ($450,000 for joint filers). The goal is to ensure that the wealthiest citizens pay a 'fair share' by taxing previously overlooked debt arrangements, directly impacting their personal finance strategies.
Key points
A new 20% excise tax is imposed on the amount borrowed annually under specified secured loans or lines of credit.
The tax applies only to individuals with an adjusted gross income above $400,000 (or $450,000 for joint returns).
The tax covers loans secured by capital assets (like stocks or bonds) but specifically excludes residential mortgages, home equity loans, and farmland-secured loans.
The borrower is responsible for paying this new tax, which will be collected annually by the Secretary of the Treasury.
Status:
Introduced
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