,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #bcjf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #c1 #bjag,mr4    
,de,fazio 7= himself1 ,mr4 ,blum5au]1   
,mr4 ,c>twright1 ,mr4 ,cony]s1 ,mr4     
,cicill9e1 ,mr4 ,g>am5di1 ,mr4          
,grijalva1 ,mr4 ,khanna1 ,mr4 ,l[5?al1  
,mrs4 ,napolitano1 ,ms4 ,norton1 ,mr4   
,pocan1 ,mr4 ,s>banes1 ,ms4 ,s*ak[sky1  
,mr4 ,scott ( ,virg9ia1 ,ms4            
,%ea-,port]1 ,ms4 ,slaught]1 ,mr4       
,mc,govern1 & ,mr4 ,rask97 introduc$ !  
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,ways & ,means  ,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 ! ,putt+ ,ma9 ,/reet     
,,fir/ ,act or z ! ,putt+ ,ma9 ,/reet   
,,fir/3 ,f9i%+ ,irresponsible ,reckless 
,speculative ,trad+ ,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 ( a security 7det]m9$ z ( ! "t ( !
 cov]$ transaction71 &  7#b7 9 ! case ( 
any paym5t ) respect to a d]ivative1 !  
am\nt ( su* paym5t4  7d7 ,cov]$         
transaction ,= purposes ( ?is section-- 
7#a7 ,9 g5]al ,! t]m cov]$ transaction  
means-- 7,a7 except z provid$ 9         
subp>agraph 7,b71 any pur*ase if--  7i7 
su* pur*ase occurs on1 or is subject to 
! rules (1 a qualifi$ bo>d or ex*ange   
locat$ 9 ! ,unit$ ,/ates1 or  7ii7 !    
pur*as] or sell] is a ,unit$ ,/ates     

p]son1 &  7,b7 any transaction ) respect
 to a d]ivative if--  7i7 su* d]ivative 
is trad$ on1 or is subject to ! rules (1
 a qualifi$ bo>d or ex*ange locat$ 9 !  
,unit$ ,/ates1 or  7ii7 any p>ty )      
rights "u su* d]ivative is a ,unit$     
,/ates p]son4  7#b7 ,exceptions f tax   
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*-- 7i7 is trad$ on1 or is
 subject to ! rules (1 a qualifi$ bo>d  
or ex*ange locat$ 9 ! ,unit$ ,/ates1 &  
7ii7 has a fix$ maturity ( n m ?an #ajj 
days1  %all n be treat$ z describ$ 9    
subsection 7e77#a77;,c74  7e7           
,def9itions ,= purposes ( ?is section-- 
7#a7 ,security ,! 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$ness1 &  7,d7 any d]ivative4     
7#b7 ,d]ivative  7,a7 ,9 g5]al ,! t]m   
d]ivative means any contract 7includ+   
any option1 =w>d contract1 futures      
contract1 %ort position1 swap1 or simil>
 contract7 ! value ( :i*1 or any paym5t 
or o!r transf] ) respect to :i*1 is     
7directly or indirectly7 det]m9$ by     
ref]5ce to "o or m ( ! foll[+3  7i7 ,any
 security describ$ 9 subp>agraph 7,a71  
7,b71 or 7,c7 ( p>agraph 7#a74  7ii7    
,any commodity :i* is actively trad$ 7)9
 ! mean+ ( section #ajib7;d77#a774      
7iii7 ,any curr5cy4  7iv7 ,any rate1    
price1 am\nt1 index1 =mula1 or algori?m4
  7v7 ,any o!r item z ! ,secret>y may   
prescribe4  ,su* t]m %all n include any 
item describ$ 9 clauses 7i7 ?r\gh 7v74  
7,b7 ,exceptions f treatm5t z d]ivatives
  7i7 ,securities l5d+1 sale-repur*ase1 
& simil> f9anc+ transactions ,to ! ext5t
 provid$ by ! ,secret>y1 ! t]m d]ivative
 %all n include ! "r to ! return ( !    

same or sub/antially id5tical securities
 transf]r$ 9 a securities l5d+          
transaction1 sale-repur*ase transaction1
 or simil> f9anc+ transaction4  7ii7    
,insurance contracts1 annuities1 &      
end[m5ts ,! t]m d]ivative %all n include
 any insurance1 annuity1 or end[m5t     
contract issu$ by an insurance company  
to :i* sub*apt] ,l applies 7or issu$ by 
any =eign corporation to :i* su*        
sub*apt] w\ld apply if su* =eign        
corporation 7 a dome/ic corporation74   
7#c7 ,qualifi$ bo>d or ex*ange ,! t]m   
qualifi$ bo>d or ex*ange has ! mean+    
giv5 su* t]m by section #abef7;g77#g74  
7f7 ,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
 on1 or is subject to ! rules (1 a      
qualifi$ bo>d or ex*ange locat$ 9 !     
,unit$ ,/ates1 su* qualifi$ bo>d or     
ex*ange1 &  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#a77;,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#a77;,b7--  7i7 ! payor if ! payor  
is a ,unit$ ,/ates p]son1 &  7ii7 !     
payee if ! payor is n a ,unit$ ,/ates   
p]son4  7g7 ,treatm5t ( ex*anges &      
paym5ts ) respect to d]ivatives ,=      
purposes ( ?is section-- 7#a7 ,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  7#b7 ,paym5ts ) respect to    
d]ivatives treat$ z sep>ate transactions
 ,except z o!rwise provid$ by !         
,secret>y1 any paym5t ) respect any     
d]ivative %all be treat$ z a sep>ate    
transaction = purposes ( ?is section4   
7h7 ,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 7f77#a7--    
7,a7 ,paym5t by ,unit$ ,/ates %>ehold]s 
,any tax :i* w\ld 7b = ?is p>agraph7 be 
payable "u subsection 7f77#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  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 &  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 ,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 on contributions 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 #ebi71 qualifi$ ,,able programs 
7z def9$ 9 section #ebi;,a71 & ,cov]dell
 education sav+s acc\nts 7z def9$ 9     
section #ecj71 ) 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  7c7 ,in=mation report+ 
) respect to controll$ =eign            
corporations ,section #fjch7;a77#a77;,b7
 ( su* ,code is am5d$ by ins]t+ &       
transactions :i* are cov]$ transactions 
= purposes ( section #ddge by reason ( !
 application ( section #ddge7;h77#a7 to 

su* corporation be=e ! semicolon at !   
end4  7d7 ,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  7#c7 ,!   
table ( sub*apt]s = *apt] #cf ( su*     
,code is am5d$ by ins]t+ aft] ! item    
relat+ to sub*apt] ,b ! foll[+ new item3
  ,sub*apt] ,c4 ,tax on trad+           
transactions  4  7e7 ,effective date ,! 
am5dm5ts made by ?is section %all apply 
to transactions aft] ,decemb] #ca1      
#bjah4