Referred to the House Committee on Ways and Means.
Taxation
Why This Matters
The bill introduces a tax on specific secured loans for high-income individuals to ensure they contribute more to the tax system. This change aims to address income inequality by targeting wealthier borrowers.
If you earn over $400,000 and take out specific loans, you will pay a new 20 percent tax on the borrowed amount.
Who this affects
Individuals earning over $400,000 · Loan borrowers
What changes is this bill making?
1This bill creates a new tax on certain loans and lines of credit.
2The tax is set at 20 percent of the amount borrowed each year.
3It applies to individuals earning over $400,000 a year.
4Residential mortgages and home equity loans are not included in this tax.
5The tax will be collected annually by the government.
