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HR 6438

ROBINHOOD Act

119th Congress Introduced by Dan Goldman and 1 co-sponsor

Imposes a 20% excise tax on the amount borrowed each year for asset-backed secured loans or lines of credit, targeting high-income borrowers.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 6438

Summary of H.R. 6438 – ROBINHOOD Act

Overview

H.R. 6438, introduced in the 119th Congress on December 4, 2025 by Rep. Goldman (NY), is titled the Redistribition of Billions by Instituting New High-Income Obligations on Overlooked Debt Act, or the ROBINHOOD Act. The bill amends the Internal Revenue Code to impose a new excise tax on certain secured loans and lines of credit, targeting high-income individuals by broadening tax obligations on leveraged borrowing.

Primary Purpose

  • To ensure that high-income individuals pay a greater share of taxes by levying an excise tax on certain secured borrowing, effectively treating a portion of borrowed funds as an economic obligation subject to tax.

Key Provisions

New Subchapter and Tax Imposition

  • Adds Subchapter E: Certain Secured Loans and Lines of Credit to Chapter 36 of the Internal Revenue Code.
  • Imposition of Tax (Sec. 4491): A new excise tax equal to 20% of the amount borrowed during the taxable year for any “specified secured loan or line of credit.”
  • Payment and Collection:
    • The tax is to be paid by the borrower.
    • The tax shall be collected annually by the Secretary of the Treasury in a manner determined by the Secretary.

Definitions and Scope

  • Specified secured loan or line of credit: A loan or revolving credit arrangement secured by capital assets, with credit determined by the value of those assets.
  • Excludes:
    • Residential mortgages
    • Home equity loans and lines of credit
    • Margin loans
    • Loans/lines of credit secured by farmland
  • Applicable borrower: An individual with adjusted gross income above a threshold (the text references $400,000 or, in the joint return context, potentially higher; the draft notes indicate $450,000 for joint filers in the definition, though the exact text shows an inconsistency between sections).
  • The act allows the Secretary to issue regulations and guidance to administer the provision.

Effective Date

  • The amendments apply to loans and lines of credit extended after the date of enactment of the bill.

Who Would Be Affected

  • Primary impact: High-income individuals who obtain specified secured loans or lines of credit (as defined by asset-backed collateral and income thresholds).
  • Tax collection and enforcement: Borrowers would face an annual 20% tax on the amount borrowed; the IRS would administer collection.
  • Lenders and financial institutions: Potential administrative changes to reportable loan data and to collect the tax from borrowers at or near the time of loan origination or as specified by the IRS.

Procedural and Timeline Details

  • Status: Introduced in the House; referred to the Committee on Ways and Means (Dec. 4, 2025).
  • No Senate text or floor action details are provided in the summary materials.
  • Effective date contingent on enactment; applies to loans extended after enactment.

Notes

  • The bill’s stated objective is to address tax fairness by targeting “overlooked” debt mechanisms used by high earners.
  • As introduced, the proposal is a new tax regime with broad implications for personal finance and credit markets, depending on how “specified secured loan or line of credit” is interpreted in final regulations.

Compiled from official sources — confirm details with the bill’s official record.

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