Bill would tax loans that ultra-wealthy use to avoid selling stock

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.

Where does it stand?