,,ii #aahth ,,congress #ast ,session ,s4 #aiij ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #ad1 #bjbc,mr4 ,sanders 7for himself and ,mr4 ,padilla7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to impose a tax on certain trading transactions to invest in our families and communities1 improve our infrastructure and our environment1 strengthen our financial security1 expand opportunity and reduce market volatility4 #a4 ,short title ,this ,act may be cited as the ,tax on ,wall ,street ,speculation ,act4 #b4 ,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,a71 7,b71 or 7,e7 of subsection 7e77#a71 7#b7 #j4aj percent in the case of a security described in subparagraph 7,c7 of such subsection1 and 7#c7 #j4jje percent in the case of a security described in subparagraph 7,d7 of such subsection4 7c7 ,specified base amount ,for purposes of this section1 the term specified base amount means-- 7#a7 except as provided in paragraph 7#b7-- 7,a7 in the case of any security described in subparagraph 7,a71 7,b71 7,c71 or 7,e7 of subsection 7e77#a71 the fair market value of the security 7determined as of the time of the covered transaction71 and 7,b7 in the case of any security described in subparagraph 7,d7 of such subsection1 the fair market value of the underlying investment with respect to such 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 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,d7 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 ,security ,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 derivative1 or 7,e7 any digital asset 7as defined in section #fjde7;g77#c77;,d774 7#b7 ,derivative ,the term derivative means any contract 7including any option1 forward contract1 futures contract1 short position1 swap1 or similar contract7 the value of which1 or any payment or other transfer with respect to which1 is 7directly or indirectly7 determined by reference to one or more of the following3 7,a7 ,any share of stock in a corporation4 7,b7 ,any partnership or beneficial ownership interest in a partnership or trust4 7,c7 ,any evidence of indebtedness4 7,d7 ,any real property4 7,e7 ,any commodity which is actively traded 7within the meaning of section #ajib7;c77#d774 7,f7 ,any currency4 7,g7 ,any rate1 price1 amount1 index1 formula1 or algorithm4 7,h7 ,any other item as the ,secretary may prescribe4 ,except as provided in regulations prescribed by the ,secretary to prevent the avoidance of the purposes of this section1 such term shall not include any item described in subparagraphs 7,a7 through 7,h74 7#c7 ,underlying investment ,the term underlying investment means1 with respect to any derivative1 any item-- 7,a7 which is described in any of the subparagraphs 7,a7 through 7,h7 of paragraph 7#b7 7or any item substantially the same as any such item71 and 7,b7 by reference to which the value of the derivative1 or any payment or other transfer with respect to the derivative1 is determined either directly or indirectly4 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 7,c71 or 7,e7 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,d7 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 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 #bjbc4 #c4 ,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 is amended by inserting after section #be;,e the following new section3 #be;,f4 ,financial transaction tax payments 7a7 ,allowance of credit ,in the case of an eligible 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 #ddge with respect to any covered transaction in which the taxpayer is a beneficial owner of the security transferred in such covered transaction4 7b7 ,special rule ,if the tax imposed under section #ddge7;a7 with respect to any covered transaction is paid by any person other than #a or more beneficial owners of the security transferred in such covered transaction1 the determination for how such tax is allocated to such beneficial owners shall be made in a reasonable manner not inconsistent with regulations or other guidance prescribed by the ,secretary4 7c7 ,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 #bjbd1 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 7#a77;f77#c7 of the ,internal ,revenue ,code of #aihf for the calendar year in which the taxable year begins1 by substituting #bjbc for #bjaf in subparagraph 7,a77ii7 thereof4 7,b7 ,rounding ,if any amount as adjusted under subparagraph 7,a7 is not a multiple of #ej1 such amount shall be rounded to the nearest multiple of #ej4 7d7 ,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 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;,e the following new item3 ,sec4 #be;,f4 ,financial transaction tax payments4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbc4