“To amend the Internal Revenue Code of 1986 to ensure high-income individuals pay their fair share of taxes.”
No CRS summary available for this bill.
This section establishes a new excise tax under IRC Chapter 36, Subchapter E, equal to 20% of the amount borrowed during the taxable year with respect to specified secured loans or lines of credit extended after enactment to applicable borrowers (i.e., individuals with adjusted gross income over $400,000, or $450,000 for joint returns). A specified secured loan or line of credit is a loan or revolving credit arrangement secured by one or more capital assets (as defined in IRC §1221(a)) where the amount or available credit is based on the asset's value, excluding residential mortgages, home equity loans or lines of credit, margin loans, and loans secured by farmland. The tax is paid by the borrower and collected annually by the Secretary of the Treasury.