A new Congress may revisit three Democratic proposals targeting carried interest, large trusts, and stock-backed borrowing.
According to Sina Finance, Oregon Senator Ron Wyden and Senator Angus King proposed taxing carried-interest income as ordinary income and requiring fund managers to recognize deemed compensation annually. Washington Senator Patty Murray’s trust bill would impose graduated annual taxes on trust assets exceeding $50 million, with a 3% rate on assets above $1 billion.
Arizona Senator Ruben Gallego’s 2026 Robin Hood Act would tax capital gains on certain long-term assets pledged for loans by individuals with at least $1 billion in assets or more than $100 million in annual income, when unrealized gains are at least as large as the loan principal. A related House bill from Representative Daniel Goldman would impose a 20% tax on certain asset-backed loans for people earning more than $400,000, while exempting some loans, including mortgages and margin loans.
Tax attorneys said the proposals are unlikely to become law soon, and Democrats lack the votes to override U.S. President Donald Trump’s veto. They could, however, shape the party’s policy priorities for the next administration.