Bill would tax loans that ultra-wealthy use to avoid selling stock
In committeeS. 4662Latest action
Sponsor: Ruben Gallego · Senator · AZ
AIDecoded by AI · checked against the recordRead the official text
Official title: ROBINHOOD Act of 2026
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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The ROBINHOOD Act would tax large loans backed by stock as if the assets were sold, hitting only the ultra-wealthy.
50-second read · 4 questions answered below
What does this do?
This bill would treat large loans taken out against stocks or other assets by very wealthy people as if enough of those assets were sold to cover the loan, triggering capital gains tax. Long-term leases over five years would be treated the same way, closing a loophole where borrowing against assets avoids taxes that selling them would trigger.
Who does it affect?
It applies only to "applicable taxpayers": people with over $100 million in yearly income or over $1 billion in assets sustained over three years, plus certain large trusts, estates, and people who renounced citizenship to avoid taxes. Ordinary Americans, most millionaires, retirees, and typical business owners are not affected.
Why does it matter?
The change would eliminate a strategy allowing the extremely wealthy to access cash from investment gains without ever paying income tax on those gains. It would not change tax treatment for the vast majority of taxpayers, whose income and assets fall far below the thresholds.
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Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedJun 2, 2026
- Senate committeeYou are here · Jun 2, 2026
- Senate vote
- House
- The president's desk
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the president.
Latest action: — Read twice and referred to the Committee on Finance.