This legislation amends the Internal Revenue Code by imposing a new 20 percent excise tax on specified secured loans and lines of credit. The tax is levied annually on the amount borrowed and is payable by the borrower, with the Secretary of the Treasury responsible for its collection. An applicable borrower subject to this tax is an individual whose adjusted gross income exceeds $400,000, or $450,000 for those filing a joint return. A specified secured loan or line of credit is defined as a loan or revolving credit arrangement secured by capital assets, where the credit amount is determined by the asset's value. Crucially, the tax explicitly excludes several common loan types, including residential mortgage loans, home equity loans and lines of credit, margin loans, and loans secured by farmland. These provisions are designed to ensure high-income individuals pay their fair share of taxes and will apply to loans and lines of credit extended after the bill's enactment.