,,ii  #aac? ,,congress  #a/ ,session    
,s4 #daj  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #bh1 #bjac    
,mr4 ,h>k9 7= himself1 ,mr4 ,:iteh\se1 &
 ,mr4 ,s&]s7 introduc$ ! foll[+ bill2   
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 impose a tax on c]ta9 trad+            
transactions4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,wall ,/reet ,trad+ &  
,speculators ,tax ,act4  #b4            
,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 ea*   
cov]$ transaction ) respect to any      
security4  7b7 ,rate ( tax ,! tax impos$
 "u subsection 7a7 ) respect to any     
cov]$ transaction %all be #j4jc p]c5t ( 
! specifi$ base am\nt ) respect to su*  

cov]$ transaction4  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$ness1  7,d7 any 
evid5ce ( an int]e/ 91 or a d]ivative   
f9ancial in/rum5t ) respect to1 any     
security or securities describ$ 9       
subp>agraph 7,a71 7,b71 or 7,c71  7,e7  
any d]ivative f9ancial in/rum5t )       
respect to any curr5cy or commodity1 &  
7,f7 any notional pr9cipal contract4    
7#b7 ,d]ivative f9ancial in/rum5t ,! t]m
 d]ivative f9ancial in/rum5t includes   
any option1 =w>d contract1 futures      
contract1 or any simil> f9ancial        
in/rum5t4  7#c7 ,notional pr9cipal      
contract ,except z o!rwise provid$ by ! 
,secret>y1 ! t]m notional pr9cipal      
contract means any f9ancial in/rum5t :i*
 requires two or m paym5ts at specifi$  
int]vals calculat$ by ref]5ce to a      
specifi$ index ^u "o or m notional      
pr9cipal am\nts4 ,an am\nt %all n fail  
to be treat$ z a paym5t describ$ 9 !    
prec$+ s5t5ce m]ely because su* am\nt is

 fix$ on "o date & paid or o!rwise tak5 
into acc\nt on a diff]5t date4  7#d7    
,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   
7,c7 any index bas$ on any objectively  
det]m9able in=mation 7includ+ !         
occurr5ce or nonoccurr5ce ( any ev5t7   
:i* is n )9 ! control ( any ( ! p>ties  
to ! in/rum5t & is n unique to any ( !  
p>ties' circum/ances1 &  7,d7 any o!r   
index z ! ,secret>y may prescribe4  7#e7
 ,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  
#ajj 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#a77 :i* is a ,unit$  
,/ates p]son1 su* 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 ,application to         
transactions by controll$ =eign         
corporations  7#a7 ,9 g5]al ,= purposes 
( ?is section1 a controll$ =eign        
corporation %all be treat$ z a ,unit$   
,/ates p]son4  7#b7 ,special rules =    
paym5t ( tax on direct1 etc41           
transactions ,9 ! case ( any transaction
 :i* is a cov]$ transaction solely by   
reason ( p>agraph 7#a7 & :i* is n       
describ$ 9 subsection 7g77#a7--  7,a7   
,paym5t by ,unit$ ,/ates %>ehold]s ,any 
tax :i* w\ld 7b = ?is p>agraph7 be      
payable "u subsection 7g77#b7 by !      
controll$ =eign corporation %all1 9 lieu
 !re(1 be paid by ! ,unit$ ,/ates       
%>ehold]s ( su* controll$ =eign         
corporation z provid$ 9 subp>agraph     
7,b74  7,b7 ,pro rata %>es ,ea* su*     
,unit$ ,/ates %>ehold] %all pay ! same  
proportion ( su* tax z--  7i7 ! /ock :i*
 su* ,unit$ ,/ates %>ehold] owns 7)9 !  

mean+ ( section #ieh7;a77 9 su*         
controll$ =eign corporation1 be>s to    
7ii7 ! /ock s own$ by all ,unit$ ,/ates 
%>ehold]s 9 su* controll$ =eign         
corporation4  7,c7 ,def9itions ,=       
purposes ( ?is subsection1 ! t]ms ,unit$
 ,/ates %>ehold] & controll$ =eign      
corporation h ! mean+s giv5 su* t]ms 9  
sections #iea7;b7 & #ieg7;a71           
respectively4  7j7 ,adm9i/ration ,!     
,secret>y %all c>ry out ?is section 9   
consultation ) ! ,securities & ,ex*ange 
,commission & ! ,commodity ,futures     
,trad+ ,commission4  7k7 ,guidance2     
regulations ,! ,secret>y %all--  7#a7   
provide guidance reg>d+ su* in=mation   
report+ conc]n+ cov]$ transactions z !  
,secret>y deems appropriate1 &  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  4  7b7 ,cr$it ) respect  
to c]ta9 tax-,favor$ acc\nts ,to (fset  
transaction tax  7#a7 ,9 g5]al ,subp>t  

,c ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( 
su* ,code is am5d$ by ins]t+ aft]       
section #cf;,b ! foll[+ new section3    
#cf;,c4 ,(fset = transaction tax )      
respect to c]ta9 tax-favor$ acc\nts  7a7
 ,9 g5]al ,!re %all be all[$ z a cr$it  
aga9/ ! tax impos$ by ?is subtitle = !  
taxable ye> an am\nt equal to #j4jc     
p]c5t ( ! qualifi$ tax-favor$ acc\nt    
contributions ( ! taxpay] = ! taxable   
ye>4  7b7 ,qualifi$ tax-,favor$ acc\nt  
contributions ,= purposes ( ?is section1
 ! t]m qualifi$ tax-favor$ acc\nt       
contributions means1 ) respect to any   
taxable ye>1 ! sum (--  7#a7 ) respect  
to qualifi$ retirem5t plans 7z def9$ 9  
section #digd7;c77 ( ! taxpay]1 ! am\nt 
contribut$ to su* plans = su* taxable   
ye> to ! ext5t t su* contributions are  
all[able z a d$uction or are excludable 
f gross income 7or1 9 ! case ( a ,ro?   
,,ira 7z def9$ 9 section #djh;,a7b771 ! 
am\nt contribut$71  7#b7 ) respect to   
,ar*] ,m,s,as ( ! taxpay]1 ! am\nt all[$
 z a d$uction "u section #bbj = su*     

taxable ye>1  7#c7 ) respect to heal?   
sav+s acc\nts ( ! taxpay]1 ! am\nt all[$
 z a d$uction "u section #bbc = su*     
taxable ye>1 plus  7#d7 ) respect to    
qualifi$ tuition programs 7z def9$ 9    
section #ebi7 & ,cov]dell education     
sav+s acc\nts 7z def9$ 9 section #ecj7 )
 respect to :i* ! taxpay] is ! designat$
 b5efici>y 7or1 9 ! case ( a designat$  
b5efici>y ) respect to :om ano!r taxpay]
 is all[$ a d$uction "u section #aea1   
su* o!r taxpay] 9 lieu ( su* designat$  
b5efici>y71 ! am\nt contribut$ = su*    
taxable ye>4  4  7#b7 ,con=m+ am5dm5ts  
7,a7 ,section #acbd7;b77#b7 ( title #ca1
 ,unit$ ,/ates ,code1 is am5d$ by ins]t+
 1 #cf;,c aft] #cf;,b4  7,b7 ,! table ( 
sections = subp>t ,c ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 be=e ! item relat+ to section #cg !    
foll[+ new item3  ,sec4 #cf;,c4 ,(fset =
 transaction tax on contributions to    
c]ta9 tax-favor$ acc\nts4  4  7c7       
,in=mation report+ ) respect to         

controll$ =eign corporations            
,subp>agraph 7,b7 ( section             
#fjch7;a77#a7 is am5d$ by ins]t+ &      
transactions :i* are cov]$ transactions 
= purposes ( section #ddge by reason ( !
 application ( section #ddge7;i77#a7 to 
su* corporation be=e ! semicolon at !   
end4  7d7 ,cl]ical am5dm5t ,! 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  7e7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to transactions aft] ,decemb]
 #ca1 #bjac4