A Democratic bill with no cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The bill, known as the Pay Your TAB Act of 2026, places a new 23.8 percent tax on certain types of loans issued after December 31, 2026. Borrowers are directly responsible for paying this tax on covered loans. The legislation includes specific rules for loans that are already outstanding as of mid-2027. It exempts common borrowing categories like home mortgages, vehicle loans, and student loans. The bill also requires lenders to report details about these covered loans to the government and furnish written statements to the affected individuals.
Yes· 3 of 6
- Scored +7
Does this raise taxes on the highest earners?
The bill imposes a 23.8 percent excise tax on certain covered loans above $1,000,000, which primarily affects high-net-worth borrowers who use large loans for tax avoidance.
- Scored +3
Does this reduce what the federal government owes?
The new excise tax on certain indebtedness will generate additional revenue for the federal government, helping to reduce the national deficit.
- Scored +3
Does this make what the government does easier for the public to see?
The legislation requires lenders to report detailed information regarding covered loans and furnish written statements to affected individuals.
The opposite· 3 of 4
- Scored -7
Would the very wealthiest people be better off under this?
Ultra-high-net-worth individuals are directly targeted by the excise tax on large indebtedness designed to curb tax avoidance through borrowing.
- Scored -7
Would billionaires be better off under this?
Billionaires who utilize large-scale borrowing strategies will face substantial tax liabilities under the new excise tax provisions.
- Scored -6
Would people with substantial wealth be better off under this?
Individuals with substantial wealth who rely on large covered loans face a significant new tax burden under the legislation.
Who it would affect, and how
Potential Positive Impacts for People
- Protection of Common Loans: Section 2(e)(1)(B) explicitly excludes everyday borrowing from the new tax, protecting home mortgages, home equity loans up to three million dollars, vehicle loans up to one hundred thousand dollars, qualified education loans, qualified margin loans, and normal business operating loans. This ensures that average citizens taking out standard loans for housing, education, or cars will not face this new penalty.
Potential Negative Impacts for People
- New Tax Burden on Borrowers: Section 2(a) imposes a 23.8 percent tax on the issuance of covered loans that must be paid directly by the borrower. This adds a significant financial burden to individuals who hold or take out large loans that do not qualify for the bill's exemptions.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — Low-income households are largely unaffected by the tax on loans exceeding $1,000,000 and benefit from exemptions for common borrowing categories like mortgages and student loans. Would middle-income households be better off under this? — Middle-class households are protected by explicit exemptions for common loans such as home mortgages, vehicle loans, and education loans. Would billionaires be better off under this? — Billionaires who utilize large-scale borrowing strategies will face substantial tax liabilities under the new excise tax provisions. Would the very wealthiest people be better off under this? — Ultra-high-net-worth individuals are directly targeted by the excise tax on large indebtedness designed to curb tax avoidance through borrowing. Would people with substantial wealth be better off under this? — Individuals with substantial wealth who rely on large covered loans face a significant new tax burden under the legislation. Would high-income households be better off under this? — High-income households face a new 23.8 percent excise tax on covered loans exceeding $1,000,000.
- Economy And Finance
- Does this raise taxes on the highest earners? — The bill imposes a 23.8 percent excise tax on certain covered loans above $1,000,000, which primarily affects high-net-worth borrowers who use large loans for tax avoidance. Does this reduce what the federal government owes? — The new excise tax on certain indebtedness will generate additional revenue for the federal government, helping to reduce the national deficit.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The legislation requires lenders to report detailed information regarding covered loans and furnish written statements to affected individuals. Does this give the federal government more power? — The bill expands federal authority by introducing a new excise tax and associated reporting requirements on certain loans.
- 10/19/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House