,,ii #aadth ,,congress #ast ,session ,s4 #acgc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ai1 #bjae ,mr4 ,sanders introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,higher ,education ,act to improve higher education programs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,college for ,all ,act4 ,i ,federal-,state ,partnership to ,eliminate ,tuition #aja4 ,grant program to eliminate tuition and required fees at public institutions of higher education 7a7 ,program authorized 7#a7 ,grants authorized ,from amounts appropriated under subsection 7f71 the ,secretary of ,education 7referred to in this section as the ,secretary7 shall award grants1 from allotments under subsection 7b71 to ,states having applications approved under subsection 7d71 to enable the ,states to eliminate tuition and required fees at public institutions of higher education4 7#b7 ,matching funds requirement ,each ,state that receives a grant under this section shall provide matching funds for a fiscal year in an amount that is equal to one half the amount received under this section for the fiscal year toward the cost of reducing the cost of attendance at public institutions of higher education in the ,state4 7b7 ,determination of allotment 7#a7 ,initial allotment ,for fiscal year #bjaf1 the ,secretary shall allot to each eligible ,state that submits an application under this section an amount that is equal to #fg percent of the total revenue received by the ,state's public system of higher education in the form of tuition and related fees for fiscal year #bjaf4 ,for each of fiscal years #bjag through #bjai1 the ,secretary shall allot to each eligible ,state that submits an application under this section-- 7,a7 an amount equal to the allotment the ,state received for fiscal year #bjaf1 plus 7,b7 if the ,state provides additional funds toward the cost of reducing the cost of attendance at public institutions of higher education in the ,state for any of such fiscal years that is more than the matching funds requirement under subsection 7a77#b71 an amount equal to such additional funding provided by the ,state1 which amount provided by the ,secretary may be used for the activities described in subsection 7e77#b74 7#b7 ,subsequent allotments ,beginning in fiscal year #bjbj1 the ,secretary shall determine the median allotment per full-time equivalent student made to all eligible ,states under this section for fiscal year #bjai and incrementally reduce allotments made to ,states under this section such that by fiscal year #bjbe1 no ,state receives an allotment under this section per full-time equivalent student that exceeds the median allotment per full-time equivalent student made under this section for fiscal year #bjai4 7c7 ,state eligibility requirements ,in order to be eligible to receive an allotment under this section for a fiscal year1 a ,state shall-- 7#a7 ensure that public institutions of higher education in the ,state maintain per-pupil expenditures on instruction at levels that meet or exceed the expenditures for the previous fiscal year2 7#b7 ensure that tuition and required fees for in-,state undergraduate students in the ,state's public higher education system are eliminated2 7#c7 maintain ,state operating expenditures for public institutions of higher education1 excluding the amount of funds provided for a fiscal year under this section1 at a level that meets or exceeds the level of such support for fiscal year #bjae2 7#d7 maintain ,state expenditures on need-based financial aid programs for enrollment in public institutions of higher education in the ,state at a level that meets or exceeds the level of such support for fiscal year #bjae2 7#e7 ensure public institutions of higher education in the ,state maintain funding for institutional need-based student financial aid in an amount that is equal to or exceeds the level of such funding for the previous fiscal year2 7#f7 provide an assurance that not later than #e years after the date of enactment of this ,act1 not less than #ge percent of instruction at public institutions of higher education in the ,state is provided by tenured or tenure-track faculty2 7#g7 require that public institutions of higher education in the ,state provide1 for each student enrolled at the institution who receives for the maximum ,federal ,pell ,grant award under subpart #a of part ,a of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj;a et seq471 institutional student financial aid in an amount equal to #ajj percent of the difference between-- 7,a7 the cost of attendance at such institution 7as determined in accordance with section #dgb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhgll771 and 7,b7 the sum of-- 7i7 the amount of the maximum ,federal ,pell ,grant award2 and 7ii7 the student's expected family contribution2 and 7#h7 ensure that public institutions of higher education in the ,state not adopt policies to reduce enrollment4 7d7 ,submission and contents of application ,for each fiscal year for which a ,state desires a grant under this section1 the ,state agency with jurisdiction over higher education1 or another agency designated by the ,governor or chief executive of the ,state to administer the program under this section1 shall submit an application to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may require4 7e7 ,use of funds 7#a7 ,in general ,a ,state that receives a grant under this section shall use the grant funds and the matching funds required under this section to eliminate tuition and required fees for students at public institutions of higher education in the ,state4 7#b7 ,additional funding ,once tuition and required fees have been eliminated pursuant to paragraph 7#a71 a ,state that receives a grant under this section shall use any remaining grant funds and matching funds required under this section to increase the quality of instruction and student support services by carrying out the following3 7,a7 ,expanding academic course offerings to students4 7,b7 ,increasing the number and percentage of full-time instructional faculty4 7,c7 ,providing all faculty with professional supports to help students succeed1 such as professional development opportunities1 office space1 and shared governance in the institution4 7,d7 ,compensating part-time faculty for work done outside of the classroom relating to instruction1 such as holding office hours4 7,e7 ,strengthening and ensuring all students have access to student support services such as academic advising1 counseling1 and tutoring4 7,f7 ,any other additional activities that improve instructional quality and academic outcomes for students as approved by the ,secretary through a peer review process4 7#c7 ,prohibition ,a ,state that receives a grant under this section may not use grant funds or matching funds required under this section-- 7,a7 for the construction of non-academic facilities1 such as student centers or stadiums2 7,b7 for merit-based student financial aid2 or 7,c7 to pay the salaries or benefits of school administrators4 7f7 ,authorization and appropriation ,there are authorized to be appropriated to carry out this section #dg1jjj1jjj1jjj for fiscal year #bjaf1 and such sums as may be necessary for each of the fiscal years #bjag through #bjbe4 ,,ii ,student loans #bja4 ,restoration of certain interest rate provisions ,section #dee7;b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7b77 is amended-- 7#a7 in paragraph 7#h7-- 7,a7 in the heading1 by striking on or after ,july #a1 #bjac and inserting on or after ,july #a1 #bjac1 and before ,july #a1 #bjae2 and 7,b7 by striking on or after ,july #a1 #bjac and inserting on or after ,july #a1 #bjac1 and before ,july #a1 #bjae each place the term appears2 7#b7 by redesignating paragraphs 7#i7 and 7#aj7 as paragraphs 7#aj7 and 7#aa71 respectively2 and 7#c7 by inserting the following after paragraph 7#h73 7#i7 ,interest rate provisions for new loans on or after ,july #a1 #bjae 7,a7 ,rates for ,,fdsl and ,,fdusl ,notwithstanding the preceding paragraphs of this subsection1 for ,federal ,direct ,stafford ,loans and ,federal ,direct ,unsubsidized ,stafford ,loans for which the first disbursement is made on or after ,july #a1 #bjae1 the applicable rate of interest shall1 during any #ab-month period beginning on ,july #a and ending on ,june #cj1 be determined on the preceding ,june #a and be equal to-- 7i7 the bond equivalent rate of #ia-;day ,treasury bills auctioned at the final auction held prior to such ,june #a2 plus 7ii7 #b4c percent1 except that such rate shall not exceed #h4be percent4 7,b7 ,in school and grace period rules ,notwithstanding the preceding paragraphs of this subsection1 with respect to any ,federal ,direct ,stafford ,loan or ,federal ,direct ,unsubsidized ,stafford ,loan for which the first disbursement is made on or after ,july #a1 #bjae1 the applicable rate of interest for interest which accrues-- 7i7 prior to the beginning of the repayment period of the loan2 or 7ii7 during the period in which principal need not be paid 7whether or not such principal is in fact paid7 by reason of a provision described in subsection 7f71 shall be determined under subparagraph 7,a7 by substituting #a4g percent for #b4c percent4 7,c7 ,,plus loans ,notwithstanding the preceding paragraphs of this subsection1 with respect to ,federal ,direct ,,plus ,loan for which the first disbursement is made on or after ,july #a1 #bjae1 the applicable rate of interest shall be determined under subparagraph 7,a7-- 7i7 by substituting #c4a percent for #b4c percent2 and 7ii7 by substituting #i4j percent for #h4be percent4 7,d7 ,consolidation loans ,notwithstanding the preceding paragraphs of this subsection1 any ,federal ,direct ,consolidation loan for which the application is received on or after ,july #a1 #bjae1 shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the lesser of-- 7i7 the weighted average of the interest rates on the loans consolidated1 rounded to the nearest higher #a_/h of #a percent2 or 7ii7 #h4be percent4 4 #bjb4 ,borrower modification of interest rates under title ,,iv ,section #dee7;b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7b771 as amended by section #bja1 is further amended by adding at the end the following3 7#ab7 ,borrower modification of interest rate 7,a7 ,modification ,notwithstanding any other provision of law1 the borrower of a ,federal ,stafford ,loan under section #dbh1 a ,federal ,direct ,stafford ,loan1 a ,federal ,unsubsidized ,stafford ,loan under section #dbh;,h1 a ,federal ,direct ,unsubsidized ,stafford ,loan1 a ,federal ,,plus ,loan under section #dbh;,b1 a ,federal ,direct ,,plus ,loan1 a ,federal ,consolidation ,loan under section #dbh;,c1 or a ,federal ,direct ,consolidation ,loan may elect to modify the interest rate of the loan to be equal to-- 7i7 in the case of a ,federal ,direct ,stafford ,loan1 a ,federal ,direct ,unsubsidized ,stafford ,loan1 a ,federal ,direct ,,plus ,loan1 or a ,federal ,direct ,consolidation ,loan1 the interest rate that would be applicable to such loan if such loan were first disbursed 7or in the case of a ,federal ,direct ,consolidation ,loan1 first applied for7 on the date on which such borrower elects to modify the interest rate of such loan2 and 7ii7 in the case of a ,federal ,stafford ,loan1 a ,federal ,unsubsidized ,stafford ,loan1 a ,federal ,,plus ,loan1 or a ,federal ,consolidation ,loan1 the weighted average of the interest rates applicable to loans under part ,b on the date the loan was first disbursed 7or in the case of a ,federal ,consolidation ,loan1 first applied for74 7,b7 ,fixed rate ,except as provided in subparagraph 7,c71 an interest rate elected under subparagraph 7,a7 for a loan shall be fixed for the life of the loan4 7,c7 ,continuing authority to modify ,a borrower may elect to modify the interest rate of a loan in accordance with subparagraph 7,a7 at any time during the life of the loan4 4 ,,iii ,federal ,work-,study ,programs #cja4 ,authorization of appropriations ,section #dda7;b7 of the ,higher ,education ,act of #aife 7#db ,u4,s4,c4 #bgea7;b77 is amended to read as follows3 7b7 ,authorization of appropriations ,there are authorized to be appropriated to carry out this part-- 7#a7 #ige1jjj1jjj for fiscal year #bjaf2 7#b7 #a1ejj1jjj1jjj for fiscal year #bjag2 7#c7 #b1jjj1jjj1jjj for fiscal year #bjah2 7#d7 #b1ejj1jjj1jjj for fiscal year #bjai2 and 7#e7 #c1jjj1jjj1jjj for fiscal year #bjbj4 4 #cjb4 ,federal ,work-,study allocation of funds ,section #ddb of the ,higher ,education ,act of #aife 7#db ,u4,s4,c4 #bgeb7 is amended-- 7#a7 by striking subsection 7a7 and inserting the following3 7a7 ,revision to the federal work study allocation ,the ,secretary shall allocate funds under this section solely on the basis of the self-help need determination described under subsection 7c74 2 7#b7 in subsection 7c7-- 7,a7 in paragraph 7#b71 by striking ,to determine the self-help need of an institution's eligible undergraduate students1 and inserting ,until such time as the ,secretary establishes a revised method to determine the self-help need of an institution's eligible undergraduate students1 in accordance with paragraph 7#e712 7,b7 in paragraph 7#c71 by striking ,to determine the self-help need of an institution's eligible graduate and professional students1 and inserting ,until such time as the ,secretary establishes a revised method to determine the self-help need of an institution's eligible graduate and professional students1 in accordance with paragraph 7#e712 and 7,c7 by adding at the end the following3 7#e7 ,not later than #a year after the date of enactment of the ,college for ,all ,act1 the ,secretary shall establish revised methods for determining the self-help need of an institution's eligible undergraduate students1 as described in paragraph 7#b71 and eligible graduate and professional students1 as described in paragraph 7#c71 that shall take into account the number of ,federal ,pell ,grant eligible low- and moderate-income students that an eligible institution serves and provide considerations for eligible institutions that successfully demonstrate improved employment outcomes4 ,the ,secretary shall promulgate any regulations necessary to carry out the revised methods of determining an eligible institution's self-help need under this subsection4 2 and 7#c7 by adding at the end the following3 7f7 ,funds ,to expand job location development programs ,notwithstanding any other provision of this part1 to promote career readiness and improve the employment skills of ,federal ,pell ,grant-eligible students1 the ,secretary is authorized to enter into agreements with eligible institutions under which such institution may not use more than #bj percent or #aej1jjj of its allotment under this section1 whichever amount is less1 to expand job location development programs1 which can be coordinated with ,state and local workforce development boards4 4 ,,iv ,offering ,necessary ,eligibility for ,timely ,institutional ,matriculation and ,enrollment #dja4 ,,fafsa pilot program ,part ,g of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh et seq47 is amended by inserting after section #dhc the following3 #dhc;,a4 ,,fafsa pilot program 7a7 ,purposes ,the purposes of this section are-- 7#a7 to streamline the annual process by which students apply for ,federal financial assistance2 7#b7 to reduce the need for students to re-apply for such assistance each year2 7#c7 to lower the cost of student borrowing by maintaining important student loan protections1 such as the in-school interest subsidy2 7#d7 to strengthen the middle class and reduce income inequality by targeting financial aid to low- and middle-income students2 and 7#e7 to ensure that the financial aid application uses income data from prior tax years readily available to students and families to facilitate the widespread and increased use of automated processes1 such as at the ,,irs-,data ,retrieval ,tool 7,,irs-,,drt71 with the goal of reducing errors and easing the time and rigor of the application process4 7b7 ,pilot program authorized ,the ,secretary is authorized to establish a pilot program and select #e eligible ,states-- 7#a7 in which a student who attends an institution of higher education in the eligible ,state may submit a single ,free ,application for ,federal ,student ,aid1 as described in section #dhc and modified under subsection 7d7 7referred to in this section as the ,,fafsa71 to be used as the application to determine the need and eligibility of the student for financial assistance under this title during the official length of the student's proposed postsecondary degree program2 and 7#b7 that shall each receive a grant in accordance with subsection 7e74 7c7 ,eligible ,states ,the ,secretary shall select #e eligible ,states that are determined by the ,secretary to have a strong record of increasing college access and affordability1 especially for low-income students1 to participate in the pilot program described in subsection 7b74 ,the selection of eligible ,states shall be based on the extent to which the ,state has-- 7#a7 invested1 and continues to invest1 significantly in public higher education1 resulting in a comparatively lower net price for low-income students2 7#b7 allocated ,state financial aid primarily on the basis of need2 and 7#c7 agreed1 as a condition of the ,state's application for the pilot program under this section1 to provide all in-,state students 7as determined by the ,state7 with an offer for ,state financial aid that-- 7,a7 is valid for not less than #b years and not more than #d years1 as determined by the ,state2 and 7,b7 shall be subject to change only upon certain conditions1 such as significant changes in a student's financial circumstances4 7d7 ,single ,,fafsa submission ,the ,secretary shall implement1 in consultation with the #e selected eligible ,states1 a pilot program to streamline the process of application to determine the need and eligibility of a student for financial assistance under this title that incorporates the following3 7#a7 ,an option for students that are enrolled in an institution of higher education in a selected eligible ,state to submit a single ,,fafsa at the beginning of the student's postsecondary degree program and receive a determination of financial assistance under this title that shall1 on a contingent basis1 be valid for not less than #b years and not more than #d years1 as determined by the ,state4 7#b7 ,the determination of financial assistance under paragraph 7#a7 shall be made in accordance with part ,f1 except that relevant calculations shall be made using a multi-year average1 of #b or #c years1 from the most recent tax years for which data are available4 ,a student may use previously submitted student and parent taxpayer data to prepopulate the electronic version of the ,,fafsa1 as described in section #dhc7;f74 7#c7 ,as a condition of the continued receipt of financial assistance under this section1 the ,secretary may require a student who submits the single ,,fafsa to respond to a short number of questions 7which may be determined by the ,secretary71 on an annual basis1 to determine if there is a change in the financial status of the student 7such as whether the student or the student's parent has experienced a substantial increase in annual income7 in order to ensure that the student continues to receive the appropriate amount of financial assistance under this title4 7#d7 ,notwithstanding paragraph 7#a71 a requirement that students who experience significant changes in their financial circumstances1 as determined by the ,secretary1 will be required to resubmit the ,,fafsa in order to receive a new determination of financial assistance under this title4 7#e7 ,an income verification process-- 7,a7 which the ,secretary1 through the establishment of a memorandum of understanding with the ,secretary of the ,treasury1 will develop to share the income tax data of a random sample of students who have received ,federal assistance under this title1 including ,federal ,pell ,grants under section #dja and loans made under part ,d2 7,b7 to ensure that students who have not resubmitted a ,,fafsa in accordance with paragraph 7#c7 did not have a significant change in financial circumstances that would have required them to do so2 7,c7 that shall be carried out in a way so as to ensure that no personally identifiable information is made public through the income verification process2 and 7,d7 that will be carried out only with the consent of students1 whose consent will be requested as part of the annual response required under paragraph 7#c74 7#f7 ,an option for students to request professional judgment or resubmit their ,,fafsa each year1 to receive a new determination of eligibility for financial assistance under this title4 7e7 ,grant amount ,each eligible ,state selected under this section shall receive a grant to increase public awareness of1 and promote the use of1 the single ,,fafsa that may be submitted under the pilot program to be used as the application to determine the need and eligibility of the student for financial assistance under this title during the official length of the student's proposed postsecondary degree program4 7f7 ,supplement not supplant ,grants provided under this section shall be used to supplement1 and not supplant1 ,state funds that are used to improve college access and affordability4 7g7 ,evaluation ,not later than #c years after the date of enactment of the ,college for ,all ,act1 and #e years thereafter1 the ,secretary shall prepare and submit to the authorizing committees a report that contains an evaluation of the effectiveness of the pilot program under this section in improving college access1 increasing ,,fafsa submission rates1 and increasing postsecondary education credit and course accumulation4 4 #djb4 ,prior1 prior year ,section #dhj7;a77#a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhgvv7a77#a77 is amended by striking subparagraph 7,b7 and inserting the following3 7,b7 ,notwithstanding section #dgh7;a7 and beginning not later than #ahj days after the date of enactment of the ,college for ,all ,act1 the ,secretary shall provide for the use of data from the second preceding tax year when and to the extent necessary to carry out the simplification of applications 7including simplification for a subset of applications7 used for the estimation and determination of financial aid eligibility4 ,such simplification shall include the sharing of data between the ,internal ,revenue ,service and the ,department1 pursuant to the consent of the taxpayer4 4 ,v ,offset #eja4 ,short title ,this title may be cited as the ,inclusive ,prosperity ,act of #bjae4 #ejb4 ,transaction tax 7a7 ,in general ,chapter #cf of the ,internal ,revenue ,code of #aihf is amended by inserting after subchapter ,b the following new subchapter3 ,c ,tax on ,trading ,transactions ,sec4 #ddge4 ,tax on trading transactions4 #ddge4 ,tax on trading transactions 7a7 ,imposition of tax ,there is hereby imposed a tax on the transfer of ownership in each covered transaction with respect to any security4 7b7 ,rate of tax ,the tax imposed under subsection 7a7 with respect to any covered transaction shall be the applicable percentage of the specified base amount with respect to such covered transaction4 ,the applicable percentage shall be-- 7#a7 #j4e percent in the case of a security described in subparagraph 7,a7 or 7,b7 of subsection 7e77#a71 7#b7 #j4aj percent in the case of a security described in subparagraph 7,c7 of subsection 7e77#a71 and 7#c7 #j4jje percent in the case of a security described in subparagraph 7,d71 7,e71 or 7,f7 of subsection 7e77#a74 7c7 ,specified base amount ,for purposes of this section1 the term specified base amount means-- 7#a7 except as provided in paragraph 7#b71 the fair market value of the security 7determined as of the time of the covered transaction71 and 7#b7 in the case of any payment described in subsection 7h71 the amount of such payment4 7d7 ,covered transaction ,for purposes of this section1 the term covered transaction means-- 7#a7 except as provided in paragraph 7#b71 any purchase of a security if-- 7,a7 such purchase occurs or is cleared on a facility located in the ,united ,states1 or 7,b7 the purchaser or seller is a ,united ,states person1 and 7#b7 any transaction with respect to a security described in subparagraph 7,d71 7,e71 or 7,f7 of subsection 7e77#a71 if-- 7,a7 such security is traded or cleared on a facility located in the ,united ,states1 or 7,b7 any party with rights under such security is a ,united ,states person4 7e7 ,security and other definitions ,for purposes of this section-- 7#a7 ,in general ,the term security means-- 7,a7 any share of stock in a corporation1 7,b7 any partnership or beneficial ownership interest in a partnership or trust1 7,c7 any note1 bond1 debenture1 or other evidence of indebtedness1 other than a ,state or local bond the interest of which is excluded from gross income under section #ajc7;a71 7,d7 any evidence of an interest in1 or a derivative financial instrument with respect to1 any security or securities described in subparagraph 7,a71 7,b71 or 7,c71 7,e7 any derivative financial instrument with respect to any currency or commodity including notional principal contracts1 and 7,f7 any other derivative financial instrument any payment with respect to which is calculated by reference to any specified index4 7#b7 ,derivative financial instrument ,the term derivative financial instrument includes any option1 forward contract1 futures contract1 notional principal contract1 or any similar financial instrument4 7#c7 ,specified index ,the term specified index means any #a or more of any combination of-- 7,a7 a fixed rate1 price1 or amount1 or 7,b7 a variable rate1 price1 or amount1 which is based on any current objectively determinable information which is not within the control of any of the parties to the contract or instrument and is not unique to any of the parties' circumstances4 7#d7 ,treatment of exchanges 7,a7 ,in general ,an exchange shall be treated as the sale of the property transferred and a purchase of the property received by each party to the exchange4 7,b7 ,certain deemed exchanges ,in the case of a distribution treated as an exchange for stock under section #cjb or #cca1 the corporation making such distribution shall be treated as having purchased such stock for purposes of this section4 7f7 ,exceptions 7#a7 ,exception for initial issues ,no tax shall be imposed under subsection 7a7 on any covered transaction with respect to the initial issuance of any security described in subparagraph 7,a71 7,b71 or 7,c7 of subsection 7e77#a74 7#b7 ,exception for certain traded short-term indebtedness ,a note1 bond1 debenture1 or other evidence of indebtedness which-- 7,a7 is traded on a trading facility located in the ,united ,states1 and 7,b7 has a fixed maturity of not more than #fj days1 shall not be treated as described in subsection 7e77#a77;,c74 7#c7 ,exception for securities lending arrangements ,no tax shall be imposed under subsection 7a7 on any covered transaction with respect to which gain or loss is not recognized by reason of section #ajeh4 7g7 ,by whom paid 7#a7 ,in general ,the tax imposed by this section shall be paid by-- 7,a7 in the case of a transaction which occurs or is cleared on a facility located in the ,united ,states1 such facility1 and 7,b7 in the case of a purchase not described in subparagraph 7,a7 which is executed by a broker 7as defined in section #fjde7;c77#a771 the broker4 7#b7 ,special rules for direct1 etc41 transactions ,in the case of any transaction to which paragraph 7#a7 does not apply1 the tax imposed by this section shall be paid by-- 7,a7 in the case of a transaction described in subsection 7d77#a7-- 7i7 the purchaser if the purchaser is a ,united ,states person1 and 7ii7 the seller if the purchaser is not a ,united ,states person1 and 7,b7 in the case of a transaction described in subsection 7d77#b7-- 7i7 the payor if the payor is a ,united ,states person1 and 7ii7 the payee if the payor is not a ,united ,states person4 7h7 ,certain payments treated as separate transactions ,except as otherwise provided by the ,secretary1 any payment with respect to a security described in subparagraph 7,d71 7,e71 or 7,f7 of subsection 7e77#a7 shall be treated as a separate transaction for purposes of this section1 including-- 7#a7 any net initial payment1 net final or terminating payment1 or net periodical payment with respect to a notional principal contract 7or similar financial instrument71 7#b7 any payment with respect to any forward contract 7or similar financial instrument71 and 7#c7 any premium paid with respect to any option 7or similar financial instrument74 7i7 ,administration ,the ,secretary shall carry out this section in consultation with the ,securities and ,exchange ,commission and the ,commodity ,futures ,trading ,commission4 7j7 ,guidance2 regulations ,the ,secretary shall-- 7#a7 provide guidance regarding such information reporting concerning covered transactions as the ,secretary deems appropriate1 including reporting by the payor of the tax in cases where the payor is not the purchaser1 and 7#b7 prescribe such regulations as are necessary or appropriate to prevent avoidance of the purposes of this section1 including the use of non-,united ,states persons in such transactions4 7k7 ,whistleblowers ,see section #gfbc for provisions relating to whistleblowers4 4 7b7 ,penalty for failure ,to include covered transaction information with return ,part ,i of subchapter ,b of chapter #fh of the ,internal ,revenue ,code of #aihf is amended by inserting after section #fgjg;,a the following new section3 #fgjg;,b4 ,penalty for failure to include covered transaction information with return 7a7 ,imposition of penalty ,any person who fails to include on any return or statement any information with respect to a covered transaction which is required pursuant to section #ddge7;j77#a7 to be included with such return or statement shall pay a penalty in the amount determined under subsection 7b74 7b7 ,amount of penalty ,except as otherwise provided in this subsection1 the amount of the penalty under subsection 7a7 with respect to any covered transaction shall be determined by the ,secretary4 7c7 ,covered transaction ,for purposes of this section1 the term covered transaction has the meaning given such term by section #ddge7;d74 7d7 ,authority ,to rescind penalty 7#a7 ,in general ,the ,commissioner of ,internal ,revenue may rescind all or any portion of any penalty imposed by this section with respect to any violation if rescinding the penalty would promote compliance with the requirements of this title and effective tax administration4 7#b7 ,no judicial appeal ,notwithstanding any other provision of law1 any determination under this subsection may not be reviewed in any judicial proceeding4 7#c7 ,records ,if a penalty is rescinded under paragraph 7#a71 the ,commissioner shall place in the file in the ,office of the ,commissioner the opinion of the ,commissioner with respect to the determination1 including-- 7,a7 a statement of the facts and circumstances relating to the violation1 7,b7 the reasons for the rescission1 and 7,c7 the amount of the penalty rescinded4 7e7 ,coordination with other penalties ,the penalty imposed by this section shall be in addition to any other penalty imposed by this title4 4 7c7 ,clerical amendments 7#a7 ,the table of sections for part ,i of subchapter ,b of chapter #fh of such ,code is amended by inserting after the item relating to section #fgjg;,a the following new item3 ,sec4 #fgjg;,b4 ,penalty for failure to include covered transaction information with return4 4 7#b7 ,the table of subchapters for chapter #cf of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to subchapter ,b the following new item3 ,subchapter ,c4 ,tax on ,trading ,transactions 4 7d7 ,effective date ,the amendments made by this section shall apply to transactions after ,december #ca1 #bjae4 #ejc4 ,offsetting credit for financial transaction tax 7a7 ,in general ,subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to nonrefundable personal credits7 is amended by inserting after section #be;,d the following new section3 #be;,e4 ,financial transaction tax payments 7a7 ,allowance of credit ,in the case of an individual1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the tax paid during the taxable year under section #ddge4 7b7 ,limitation based on modified adjusted gross income 7#a7 ,in general ,subsection 7a7 shall not apply to a taxpayer for the taxable year if the modified adjusted gross income of the taxpayer for the taxable year exceeds #ej1jjj 7#ge1jjj in the case of a joint return and one-half of such amount in the case of a married individual filing a separate return74 7#b7 ,modified adjusted gross income ,for purposes of paragraph 7#a71 the term modified adjusted gross income means adjusted gross income-- 7,a7 determined without regard to sections #hf1 #hic1 #iaa1 #ica1 and #icc1 and 7,b7 increased by the amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax4 7#c7 ,inflation adjustment 7,a7 ,in general ,in the case of any taxable year beginning after #bjaf1 each dollar amount referred to in paragraph 7#a7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 of the ,internal ,revenue ,code of #aihf for the calendar year in which the taxable year begins1 by substituting #bjae for #aiib4 7,b7 ,rounding ,if any amount as adjusted under clause 7i7 is not a multiple of #ej1 such amount shall be rounded to the nearest multiple of #ej4 7c7 ,eligible individual 7#a7 ,in general ,the term eligible individual means1 with respect to any taxable year1 an individual who-- 7,a7 has attained the age of #ah as of the last day of such taxable year1 and 7,b7 is a citizen or lawful permanent resident 7within the meaning of section #ggja7;b77#f77 as of the last day of such taxable year4 7#b7 ,certain individuals not eligible ,for purposes of paragraph 7#a71 an individual described in any of the following provisions of this title for the preceding taxable year shall not be treated as an eligible individual for the taxable year3 7,a7 ,an individual who is a student 7as defined in section #aeb7;f77#b77 for the taxable year or the immediately preceding taxable year4 7,b7 ,an individual who is a taxpayer described in subsection 7c71 7d71 or 7e7 of section #fdjb for the immediately preceding taxable year4 7,c7 ,a married individual who files a separate return for the taxable year4 4 7b7 ,clerical amendment ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #be;,d the following new item3 ,sec4 #be;,e4 ,financial transaction tax payments4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjae4