ROBINHOOD Act of 2026
Sen. Gallego Introduces ROBINHOOD Act to Tax Billionaires on Loans Used to Avoid Income Tax
The ROBINHOOD Act of 2026 is currently in the early stages of the legislative process. It was recently introduced in the Senate and sent to the Committee on Finance for review. No further actions are scheduled at this time, and the bill is waiting for the committee to decide on its next steps.
Legislative Progress
This bill faces strong opposition from those who argue it is unconstitutional to tax assets that have not been sold. It is currently a single-party proposal with no clear path to passing.
Key Points
Impact Analysis
Personal Impact
Life & Work
Small business owners who also happen to be billionaires and borrow through pass-through entities like partnerships or S corporations could see those loans attributed to them personally on a pro rata basis. The vast majority of small business owners would be completely unaffected because they fall far below the $1 billion asset or $100 million income thresholds.
Activities
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
5 articlesGallego targets 'buy, borrow, die' tax maneuver with new ROBINHOOD Act
Senator Ruben Gallego (D-Ariz.) introduced the ROBINHOOD Act to close the 'borrow' aspect of the 'buy, borrow, die' loophole. The bill treats loans taken out by individuals with over $100 million in income or $1 billion in assets as realization events, triggering capital gains taxes on the loan.
The ROBINHOOD Act: A Targeted Strike on Billionaire Borrowing
Introduced by Rep. Dan Goldman and Sen. Ruben Gallego, the ROBINHOOD Act imposes a 20% excise tax on loans and lines of credit backed by capital assets like stocks and real estate. The bill aims to generate $276 billion over a decade by ensuring the ultra-wealthy pay taxes on their liquid cash.
Proposed 'billionaire tax' in California spurs controversy as federal ROBINHOOD Act gains steam
As California voters weigh a state-level billionaire tax, federal lawmakers are pushing the ROBINHOOD Act. The legislation would treat asset-backed loans as sales for tax purposes, a move critics warn could lead to capital flight while supporters argue it restores fairness to the tax code.
Source Information
Document Type
Congressional Bill
Official Title
ROBINHOOD Act of 2026
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.