,,ii  #aah? ,,congress  #a/ ,session    
,s4 #aiij  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #ad1 #bjbc,mr4   
,s&]s 7= himself & ,mr4 ,padilla7       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to impose a tax on 
c]ta9 trad+ transactions to inve/ 9 our 
families & communities1 improve our     
infra/ructure & our environm5t1 /r5g!n  
our f9ancial security1 exp& opportunity 
& r$uce m>ket volatility4  #a4 ,%ort    
title ,?is ,act may be cit$ z ! ,tax on 
,wall ,/reet ,speculation ,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 !     
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,a71 7,b71 or 7,e7 (       
subsection 7e77#a71  7#b7 #j4aj p]c5t 9 
! case ( a security describ$ 9          
subp>agraph 7,c7 ( su* subsection1 &    
7#c7 #j4jje p]c5t 9 ! case ( a security 
describ$ 9 subp>agraph 7,d7 ( su*       
subsection4  7c7 ,specifi$ base am\nt ,=
 purposes ( ?is section1 ! t]m specifi$ 
base am\nt means-- 7#a7 except z provid$
 9 p>agraph 7#b7-- 7,a7 9 ! case ( any  
security describ$ 9 subp>agraph 7,a71   
7,b71 7,c71 or 7,e7 ( subsection        
7e77#a71 ! fair m>ket value ( ! security
 7det]m9$ z ( ! "t ( ! cov]$            
transaction71 &  7,b7 9 ! case ( any    
security describ$ 9 subp>agraph 7,d7 (  
su* subsection1 ! fair m>ket value ( !  
und]ly+ inve/m5t ) respect to su*       
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,d7 ( 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 ,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$ness1 o!r ?an a ,/ate or local   
bond ! int]e/ ( :i* is exclud$ f gross  

income "u section #ajc7;a71  7,d7 any   
d]ivative1 or  7,e7 any digital asset 7z
 def9$ 9 section #fjde7;g77#c77;,d774   
7#b7 ,d]ivative ,! 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 7,a7 ,any %>e ( /ock 9 
a corporation4  7,b7 ,any p>tn]%ip or   
b5eficial own]%ip int]e/ 9 a p>tn]%ip or
 tru/4  7,c7 ,any evid5ce ( indebt$ness4
  7,d7 ,any real prop]ty4  7,e7 ,any    
commodity :i* is actively trad$ 7)9 !   
mean+ ( section #ajib7;c77#d774  7,f7   
,any curr5cy4  7,g7 ,any rate1 price1   
am\nt1 index1 =mula1 or algori?m4  7,h7 
,any o!r item z ! ,secret>y may         
prescribe4  ,except z provid$ 9         
regulations prescrib$ by ! ,secret>y to 
prev5t ! avoidance ( ! purposes ( ?is   
section1 su* t]m %all n include any item
 describ$ 9 subp>agraphs 7,a7 ?r\gh     

7,h74  7#c7 ,und]ly+ inve/m5t ,! t]m    
und]ly+ inve/m5t means1 ) respect to any
 d]ivative1 any item-- 7,a7 :i* is      
describ$ 9 any ( ! subp>agraphs 7,a7    
?r\gh 7,h7 ( p>agraph 7#b7 7or any item 
sub/antially ! same z any su* item71 &  
7,b7 by ref]5ce to :i* ! value ( !      
d]ivative1 or any paym5t or o!r transf] 
) respect to ! d]ivative1 is det]m9$    
ei!r directly or indirectly4  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 7,c71 or 7,e7

 ( 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,d7 (
 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+ ,transactions  4  7d7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to transactions aft] 
,decemb] #ca1 #bjbc4  #c4 ,(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 is am5d$ by ins]t+ aft] section  
#be;,e ! foll[+ new section3  #be;,f4   
,f9ancial transaction tax paym5ts  7a7  
,all[ance ( cr$it ,9 ! case ( an        
eligible individual1 !re %all be all[$ z
 a cr$it aga9/ ! tax impos$ by ?is *apt]
 = ! taxable ye> an am\nt equal to ! tax
 paid dur+ ! taxable ye> "u section     
#ddge ) respect to any cov]$ transaction
 9 :i* ! taxpay] is a b5eficial own] ( !
 security transf]r$ 9 su* cov]$         
transaction4  7b7 ,special rule ,if !   
tax impos$ "u section #ddge7;a7 )       
respect to any cov]$ transaction is paid
 by any p]son o!r ?an #a or m b5eficial 
own]s ( ! security transf]r$ 9 su* cov]$
 transaction1 ! det]m9ation = h[ su* tax
 is allocat$ to su* b5eficial own]s %all
 be made 9 a reasonable mann] n         
inconsi/5t ) regulations or o!r guidance
 prescrib$ by ! ,secret>y4  7c7         
,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]      
#bjbd1 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+ #bjbc = #bjaf 9 subp>agraph  

7,a77ii7 !re(4  7,b7 ,r\nd+ ,if any     
am\nt z adju/$ "u subp>agraph 7,a7 is n 
a multiple ( #ej1 su* am\nt %all be     
r\nd$ to ! ne>e/ multiple ( #ej4  7d7   
,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  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;,e !  
foll[+ new item3  ,sec4 #be;,f4         
,f9ancial transaction tax paym5ts4  4   
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjbc4