,i #aac? ,,congress #a/ ,session ,h4 ,r4 #aegi ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,april #af1 #bjac ,mr4 ,ellison 7= himself1 ,mr4 ,blum5au]1 ,ms4 ,*u1 ,mr4 ,cony]s1 ,ms4 ,edw>ds1 ,mr4 ,grijalva1 ,ms4 ,lee ( ,cali=nia1 ,mr4 ,mc,govern1 & ,ms4 ,norton7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to impose a tax on c]ta9 trad+ transactions to /r5g!n our f9ancial security1 r$uce m>ket volatility1 exp& opportunity1 & /op %r9k+ ! middle class4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,inclusive ,prosp]ity ,act ( #bjac4 #b4 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,! global f9ancial crisis co/ ,am]icans #ai trillion 9 lo/ weal?4 7#b7 ,! global f9ancial crisis 0 caus$ by f9ancial firms tak+ great f9ancial risks )\t disclos+ ^? risks to _! inve/ors or _! regulators1 & by regulatory failures to adequately police ! f9ancial s]vices m>kets = crime1 unfair or deceptive practices1 fraud1 lack ( transp>5cy1 & mismanagem5t4 7#c7 ,deceptive1 illegal1 & speculative f9ancial practices h h>m$ public confid5ce 9 ! integrity & fairness ( _m ,unit$ ,/ates f9ancial in/itutions1 & ?reat5 ! basic /r5g?s ( ! ,unit$ ,/ates economic sy/em4 7#d7 ,am]ican citiz5s provid$ ! money to /abilize ! f9ancial sector1 mak+ #fjj billion available to #hjj f9ancial in/itutions1 automak]s1 & insurance companies4 7#e7 ,! global f9ancial crisis1 along ) ! w>s1 unabat$ & unaddress$ climate *ange1 unsu/a9able tax cuts1 & a cont9u+ unemploym5t crisis1 if unaddress$1 w deprive a g5]ation ( a mean+ful role 9 ! l>g] economy4 7#f7 ,nurses1 tea*]s1 public safety (fic]s1 & o!r public sector work]s h fac$ dra/ic fund+ cuts1 h>m+ our long-t]m public safety & prospects = economic gr[?4 7#g7 ,extreme wea!r ev5ts root$ 9 climate *ange1 includ+ flood1 dr\ght1 fire1 sup] /orms l ,s&y1 z well z sl[-onset ev5ts l sea level rise1 are wreak+ havoc 9 ! ,unit$ ,/ates & across ! globe result+ 9 climate *ange impacts t jeop>dize ! lives & livelihoods ( ,am]icans1 caus+ l>ge-scale food & en]gy insecurity 9 develop+ c\ntries1 & extoll+ untold economic co/s4 7#h7 ,accord+ to economi/s1 a small tax on transf] ( own]%ip ( e f9ancial trade c\ld g5]ate hundr$s ( billions annually 9 rev5ue1 :i* :5 inve/$ c\ld help create suffici5t jobs 9 bo? ! public & private sectors to replace ! #h million jobs lo/ 9 ! rec5t recession & add ev5 m jobs on an ongo+ basis1 z well z provide urg5tly ne$$ fund+ = programs to combat climate *ange & address global heal? & developm5t issues4 7#i7 ,a transactions tax w help limit high frequ5cy trad+ :i* may be z high z #gj p]c5t ( ! m>ket & results 9 decl9+ m>ket /ability ?r\gh extreme price volatility1 di/ort$ m>ket prices1 & /ructural vuln]ability to speculation f> 9 excess ( ! liquidity ne$s ( comm]cial h$g]s4 7#aj7 ,a securities transf] tax w\ld h a negligible impact on ! av]age inve/or4 7#aa7 ,! ,unit$ ,/ates _h a transf] tax f #aiad to #aiff3 ,! ,rev5ue ,act ( #aiad 7,act ( ,oct4 #bb1 #aiad 7*4 #cca1 #ch ,/at4 #gde77 levi$ a #j4b p]c5t tax on all sales or transf]s ( /ock :i* 0 d\bl$ 9 #aicb to help ov]come ! budget>y *all5ges dur+ ! ,great ,depression4 7#ab7 ,=ty nations h or h _h "s =m ( a f9ancial transactions tax2 x is endors$ by m ?an #a1jjj economi/s2 & #aa ,european c\ntries are mov+ =w>d on implem5t+ a coord9at$ f9ancial transactions tax aft] ,european ,union f9ance m9i/]s signal$ approval 9 ,janu>y #bjac4 7#ac7 ,rev5ue g5]at$ by ?is tax w be available to-- 7,a7 /r5g!n f9ancial security & exp& opportunity = l[- & mod]ate-income families1 includ+ /r5g!n+ ! social safety net & exp&+ res\rces = *ild c>e1 ,social ,security1 & sav+s inc5tives2 & 7,b7 exp& res\rces = ,/ate & ,f$]al inve/m5ts t protect our heal? & environm5t1 inve/+ 9 wat] & wa/ewat] infra/ructure1 rebuild our crumbl+ physical infra/ructure1 & create good pay+ jobs by-- 7i7 exp&+ & improv+ ,m$ic>e & ,m$icaid2 7ii7 inve/+ 9 education1 /ud5t debt relief1 job tra9+1 public sector jobs1 & gre5 jobs2 7iii7 provid+ h\s+ assi/ance to l[-income h\seholds2 7iv7 inve/+ 9 transportation includ+ public mass transit & an infra/ructure bank t promotes environm5tally responsible dome/ic manufactur+ & con/ruction indu/ries2 & 7v7 protect+ our environm5t & build+ a clean en]gy economy1 includ+ ef=ts to combat climate *ange & build resili5ce to its effects 9 ! ,unit$ ,/ates & 9 develop+ c\ntries2 & 7,c7 fund int]national su/a9able prosp]ity programs su* z heal? c>e inve/m5ts1 ,,aids treatm5t1 rese>* & prev5tion programs1 climate *ange adaptation & mitigation ef=ts by develop+ c\ntries1 & int]national assi/ance4 #c4 ,transaction tax 7a7 ,9 g5]al ,*apt] #cf ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] sub*apt] ,b ! foll[+ new sub*apt]3 ,c ,tax on ,trad+ ,transactions ,sec4 #ddge4 ,tax on trad+ transactions4 #ddge4 ,tax on trad+ transactions 7a7 ,imposition ( tax ,!re is h]eby impos$ a tax on ! transf] ( own]%ip 9 ea* cov]$ transaction ) respect to any security4 7b7 ,rate ( tax ,! tax impos$ "u subsection 7a7 ) respect to any cov]$ transaction %all be ! applicable p]c5tage ( ! specifi$ base am\nt ) respect to su* cov]$ transaction4 ,! applicable p]c5tage %all be-- 7#a7 #j4e p]c5t 9 ! case ( a security describ$ 9 subp>agraph 7,a7 or 7,b7 ( subsection 7e77#a71 7#b7 #j4aj p]c5t 9 ! case ( a security describ$ 9 subp>agraph 7,c7 ( subsection 7e77#a71 & 7#c7 #j4jje p]c5t 9 ! case ( a security describ$ 9 subp>agraph 7,d71 7,e71 or 7,f7 ( subsection 7e77#a74 7c7 ,specifi$ base am\nt ,= purposes ( ?is section1 ! t]m specifi$ base am\nt means-- 7#a7 except z provid$ 9 p>agraph 7#b71 ! fair m>ket value ( ! security 7det]m9$ z ( ! "t ( ! cov]$ transaction71 & 7#b7 9 ! case ( any paym5t describ$ 9 subsection 7h71 ! am\nt ( su* paym5t4 7d7 ,cov]$ transaction ,= purposes ( ?is section1 ! t]m cov]$ transaction means-- 7#a7 except z provid$ 9 p>agraph 7#b71 any pur*ase if-- 7,a7 su* pur*ase occurs or is cle>$ on a facility locat$ 9 ! ,unit$ ,/ates1 or 7,b7 ! pur*as] or sell] is a ,unit$ ,/ates p]son1 & 7#b7 any transaction ) respect to a security describ$ 9 subp>agraph 7,d71 7,e71 or 7,f7 ( subsection 7e77#a71 if-- 7,a7 su* security is trad$ or cle>$ on a facility locat$ 9 ! ,unit$ ,/ates1 or 7,b7 any p>ty ) rights "u su* security is a ,unit$ ,/ates p]son4 7e7 ,security & o!r def9itions ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m security means-- 7,a7 any %>e ( /ock 9 a corporation1 7,b7 any p>tn]%ip or b5eficial own]%ip int]e/ 9 a p>tn]%ip or tru/1 7,c7 any note1 bond1 deb5ture1 or o!r evid5ce ( indebt$ness1 o!r ?an a ,/ate or local bond ! int]e/ ( :i* is exclud$ f gross income "u section #ajc7;a71 7,d7 any evid5ce ( an int]e/ 91 or a d]ivative f9ancial in/rum5t ) respect to1 any security or securities describ$ 9 subp>agraph 7,a71 7,b71 or 7,c71 7,e7 any d]ivative f9ancial in/rum5t ) respect to any curr5cy or commodity includ+ notional pr9cipal contracts1 & 7,f7 any o!r d]ivative f9ancial in/rum5t any paym5t ) respect to :i* is calculat$ by ref]5ce to any specifi$ index4 7#b7 ,d]ivative f9ancial in/rum5t ,! t]m d]ivative f9ancial in/rum5t includes any option1 =w>d contract1 futures contract1 notional pr9cipal contract1 or any simil> f9ancial in/rum5t4 7#c7 ,specifi$ index ,! t]m specifi$ index means any #a or m ( any comb9ation (-- 7,a7 a fix$ rate1 price1 or am\nt1 or 7,b7 a v>iable rate1 price1 or am\nt1 :i* is bas$ on any curr5t objectively det]m9able in=mation :i* is n )9 ! control ( any ( ! p>ties to ! contract or in/rum5t & is n unique to any ( ! p>ties' circum/ances4 7#d7 ,treatm5t ( ex*anges 7,a7 ,9 g5]al ,an ex*ange %all be treat$ z ! sale ( ! prop]ty transf]r$ & a pur*ase ( ! prop]ty receiv$ by ea* p>ty to ! ex*ange4 7,b7 ,c]ta9 deem$ ex*anges ,9 ! case ( a di/ribution treat$ z an ex*ange = /ock "u section #cjb or #cca1 ! corporation mak+ su* di/ribution %all be treat$ z hav+ pur*as$ su* /ock = purposes ( ?is section4 7f7 ,exceptions 7#a7 ,exception = initial issues ,no tax %all be impos$ "u subsection 7a7 on any cov]$ transaction ) respect to ! initial issuance ( any security describ$ 9 subp>agraph 7,a71 7,b71 or 7,c7 ( subsection 7e77#a74 7#b7 ,exception = c]ta9 trad$ %ort-t]m indebt$ness ,a note1 bond1 deb5ture1 or o!r evid5ce ( indebt$ness :i*-- 7,a7 is trad$ on a trad+ facility locat$ 9 ! ,unit$ ,/ates1 & 7,b7 has a fix$ maturity ( n m ?an #fj days1 %all n be treat$ z describ$ 9 subsection 7e77#a77;,c74 7#c7 ,exception = securities l5d+ arrangem5ts ,no tax %all be impos$ "u subsection 7a7 on any cov]$ transaction ) respect to :i* ga9 or loss is n recogniz$ by reason ( section #ajeh4 7g7 ,by :om paid 7#a7 ,9 g5]al ,! tax impos$ by ?is section %all be paid by-- 7,a7 9 ! case ( a transaction :i* occurs or is cle>$ on a facility locat$ 9 ! ,unit$ ,/ates1 su* facility1 & 7,b7 9 ! case ( a pur*ase n describ$ 9 subp>agraph 7,a7 :i* is execut$ by a brok] 7z def9$ 9 section #fjde7;c77#a771 ! brok]4 7#b7 ,special rules = direct1 etc41 transactions ,9 ! case ( any transaction to :i* p>agraph 7#a7 does n apply1 ! tax impos$ by ?is section %all be paid by-- 7,a7 9 ! case ( a transaction describ$ 9 subsection 7d77#a7-- 7i7 ! pur*as] if ! pur*as] is a ,unit$ ,/ates p]son1 & 7ii7 ! sell] if ! pur*as] is n a ,unit$ ,/ates p]son1 & 7,b7 9 ! case ( a transaction describ$ 9 subsection 7d77#b7-- 7i7 ! payor if ! payor is a ,unit$ ,/ates p]son1 & 7ii7 ! payee if ! payor is n a ,unit$ ,/ates p]son4 7h7 ,c]ta9 paym5ts treat$ z sep>ate transactions ,except z o!rwise provid$ by ! ,secret>y1 any paym5t ) respect to a security describ$ 9 subp>agraph 7,d71 7,e71 or 7,f7 ( subsection 7e77#a7 %all be treat$ z a sep>ate transaction = purposes ( ?is section1 includ+-- 7#a7 any net initial paym5t1 net f9al or t]m9at+ paym5t1 or net p]iodical paym5t ) respect to a notional pr9cipal contract 7or simil> f9ancial in/rum5t71 7#b7 any paym5t ) respect to any =w>d contract 7or simil> f9ancial in/rum5t71 & 7#c7 any premium paid ) respect to any option 7or simil> f9ancial in/rum5t74 7i7 ,adm9i/ration ,! ,secret>y %all c>ry out ?is section 9 consultation ) ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission4 7j7 ,guidance2 regulations ,! ,secret>y %all-- 7#a7 provide guidance reg>d+ su* in=mation report+ conc]n+ cov]$ transactions z ! ,secret>y deems appropriate1 includ+ report+ by ! payor ( ! tax 9 cases :]e ! payor is n ! pur*as]1 & 7#b7 prescribe su* regulations z are necess>y or appropriate to prev5t avoidance ( ! purposes ( ?is section1 includ+ ! use ( non-,unit$ ,/ates p]sons 9 su* transactions4 7k7 ,:i/lebl[]s ,see section #gfbc = provisions relat+ to :i/lebl[]s4 4 7b7 ,p5alty = failure ,to include cov]$ transaction in=mation ) return ,"p ,i ( sub*apt] ,b ( *apt] #fh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #fgjg;,a ! foll[+ new section3 #fgjg;,b4 ,p5alty = failure to include cov]$ transaction in=mation ) return 7a7 ,imposition ( p5alty ,any p]son :o fails to include on any return or /atem5t any in=mation ) respect to a cov]$ transaction :i* is requir$ pursuant to section #ddge7;j77#a7 to be includ$ ) su* return or /atem5t %all pay a p5alty 9 ! am\nt det]m9$ "u subsection 7b74 7b7 ,am\nt ( p5alty ,except z o!rwise provid$ 9 ?is subsection1 ! am\nt ( ! p5alty "u subsection 7a7 ) respect to any cov]$ transaction %all be det]m9$ by ! ,secret>y4 7c7 ,cov]$ transaction ,= purposes ( ?is section1 ! t]m cov]$ transaction has ! mean+ giv5 su* t]m by section #ddge7;d74 7d7 ,au?ority ,to resc9d p5alty 7#a7 ,9 g5]al ,! ,commission] ( ,int]nal ,rev5ue may resc9d all or any portion ( any p5alty impos$ by ?is section ) respect to any violation if resc9d+ ! p5alty w\ld promote compliance ) ! requirem5ts ( ?is title & effective tax adm9i/ration4 7#b7 ,no judicial appeal ,not)/&+ any o!r provision ( law1 any det]m9ation "u ?is subsection may n be review$ 9 any judicial proce$+4 7#c7 ,records ,if a p5alty is resc9d$ "u p>agraph 7#a71 ! ,commission] %all place 9 ! file 9 ! ,(fice ( ! ,commission] ! op9ion ( ! ,commission] ) respect to ! det]m9ation1 includ+-- 7,a7 a /atem5t ( ! facts & circum/ances relat+ to ! violation1 7,b7 ! reasons = ! rescission1 & 7,c7 ! am\nt ( ! p5alty resc9d$4 7e7 ,coord9ation ) o!r p5alties ,! p5alty impos$ by ?is section %all be 9 addition to any o!r p5alty impos$ by ?is title4 4 7c7 ,cl]ical am5dm5ts 7#a7 ,! table ( sections = "p ,i ( sub*apt] ,b ( *apt] #fh ( su* ,code is am5d$ by ins]t+ aft] item relat+ to section #fgjg;,a ! foll[+ new item3 ,sec4 #fgjg;,b4 ,p5alty = failure to include cov]$ transaction in=mation ) return4 4 7#b7 ,! table ( sub*apt]s = *apt] #cf ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to sub*apt] ,b ! foll[+ new item3 ,sub*apt] ,c4 ,tax on ,trad+ ,transactions4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to transactions aft] ,decemb] #ca1 #bjac4 #d4 ,(fsett+ cr$it = f9ancial transaction tax 7a7 ,9 g5]al ,subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf 7relat+ to nonrefundable p]sonal cr$its7 is am5d$ by ins]t+ aft] section #be;,d ! foll[+ new section3 #be;,e4 ,f9ancial transaction tax paym5ts 7a7 ,all[ance ( cr$it ,9 ! case ( an individual1 !re %all be all[$ z a cr$it aga9/ ! tax impos$ by ?is *apt] = ! taxable ye> an am\nt equal to ! tax paid dur+ ! taxable ye> "u section #ddge4 7b7 ,limitation bas$ on modifi$ adju/$ gross income 7#a7 ,9 g5]al ,subsection 7a7 %all n apply to a taxpay] = ! taxable ye> if ! modifi$ adju/$ gross income ( ! taxpay] = ! taxable ye> exce$s #ej1jjj 7#ge1jjj 9 ! case ( a jo9t return & "o-half ( su* am\nt 9 ! case ( a m>ri$ individual fil+ a sep>ate return74 7#b7 ,modifi$ adju/$ gross income ,= purposes ( p>agraph 7#a71 ! t]m modifi$ adju/$ gross income means adju/$ gross income-- 7,a7 det]m9$ )\t reg>d to sections #hf1 #hic1 #iaa1 #ica1 & #icc1 & 7,b7 increas$ by ! am\nt ( int]e/ receiv$ or accru$ by ! taxpay] dur+ ! taxable ye> :i* is exempt f tax4 7#c7 ,inflation adju/m5t 7,a7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ aft] #bjad1 ea* doll> am\nt ref]r$ to 9 p>agraph 7#a7 %all be increas$ by an am\nt equal to-- 7i7 su* doll> am\nt1 multipli$ by 7ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section 7#a77;f77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 by sub/itut+ #bjac = #aiib4 7,b7 ,r\nd+ ,if any am\nt z adju/$ "u clause 7i7 is n a multiple ( #ej1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #ej4 7c7 ,eligible individual 7#a7 ,9 g5]al ,! t]m eligible individual means1 ) respect to any taxable ye>1 an individual :o-- 7,a7 has atta9$ ! age ( #ah z ( ! la/ day ( su* taxable ye>1 & 7,b7 is a citiz5 or lawful p]man5t resid5t 7)9 ! mean+ ( section #ggja7;b77#f77 z ( ! la/ day ( su* taxable ye>4 7#b7 ,c]ta9 individuals n eligible ,= purposes ( p>agraph 7#a71 an individual describ$ 9 any ( ! foll[+ provisions ( ?is title = ! prec$+ taxable ye> %all n be treat$ z an eligible individual = ! taxable ye>3 7,a7 ,an individual :o is a /ud5t 7z def9$ 9 section #aeb7;f77#b77 = ! taxable ye> or ! imm$iately prec$+ taxable ye>4 7,b7 ,an individual :o is a taxpay] describ$ 9 subsection 7c71 7d71 or 7e7 ( section #fdjb = ! imm$iately prec$+ taxable ye>4 7,c7 ,a m>ri$ individual :o files a sep>ate return = ! taxable ye>4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #be;,d ! foll[+ new item3 ,sec4 #be;,e4 ,f9ancial transaction tax paym5ts4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4