HR 3313 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 3313CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to impose a tax on certain trading transactions.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

November 2, 2011CommentsClose CommentsPermalink

Mr. DEFAZIO (for himself, Mr. BRALEY of Iowa, Mr. JOHNSON of Georgia, Mr. SARBANES, Mr. FILNER, Ms. SUTTON, Mr. BLUMENAUER, Ms. SLAUGHTER, Ms. HIRONO, Mr. WELCH, Mr. CONYERS, Ms. EDWARDS, and Mr. HINCHEY) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to impose a tax on certain trading transactions.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Wall Street Trading and Speculators Tax Act’.CommentsClose CommentsPermalink

SEC. 2. TRANSACTION TAX.

(a) In General- Chapter 36 of the Internal Revenue Code of 1986 is amended by inserting after subchapter B the following new subchapter:CommentsClose CommentsPermalink

‘Subchapter C--Tax on Trading Transactions

‘Sec. 4475. Tax on trading transactions.CommentsClose CommentsPermalink

‘SEC. 4475. TAX ON TRADING TRANSACTIONS.

‘(a) Imposition of Tax- There is hereby imposed a tax on each covered transaction with respect to any security.CommentsClose CommentsPermalink





‘(b) Rate of Tax- The tax imposed under subsection (a) with respect to any covered transaction shall be 0.03 percent of the specified base amount with respect to such covered transaction.CommentsClose CommentsPermalink





‘(c) Specified Base Amount- For purposes of this section, the term ‘specified base amount’ means--CommentsClose CommentsPermalink





‘(1) except as provided in paragraph (2), the fair market value of the security (determined as of the time of the covered transaction), andCommentsClose CommentsPermalink





‘(2) in the case of any payment described in subsection (h), the amount of such payment.CommentsClose CommentsPermalink





‘(d) Covered Transaction- For purposes of this section, the term ‘covered transaction’ means--CommentsClose CommentsPermalink





‘(1) except as provided in paragraph (2), any purchase if--CommentsClose CommentsPermalink





‘(A) such purchase occurs or is cleared on a facility located in the United States, orCommentsClose CommentsPermalink





‘(B) the purchaser or seller is a United States person, andCommentsClose CommentsPermalink





‘(2) any transaction with respect to a security described in subparagraph (D), (E), or (F) of subsection (e)(1), if--CommentsClose CommentsPermalink





‘(A) such security is traded or cleared on a facility located in the United States, orCommentsClose CommentsPermalink





‘(B) any party with rights under such security is a United States person.CommentsClose CommentsPermalink





‘(e) Security and Other Definitions- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘security’ means--CommentsClose CommentsPermalink





‘(A) any share of stock in a corporation,CommentsClose CommentsPermalink





‘(B) any partnership or beneficial ownership interest in a partnership or trust,CommentsClose CommentsPermalink





‘(C) any note, bond, debenture, or other evidence of indebtedness,CommentsClose CommentsPermalink





‘(D) any evidence of an interest in, or a derivative financial instrument with respect to, any security or securities described in subparagraph (A), (B), or (C),CommentsClose CommentsPermalink





‘(E) any derivative financial instrument with respect to any currency or commodity, andCommentsClose CommentsPermalink





‘(F) any other derivative financial instrument any payment with respect to which is calculated by reference to any specified index.CommentsClose CommentsPermalink





‘(2) DERIVATIVE FINANCIAL INSTRUMENT- The term ‘derivative financial instrument’ includes any option, forward contract, futures contract, notional principal contract, or any similar financial instrument.CommentsClose CommentsPermalink





‘(3) SPECIFIED INDEX- The term ‘specified index’ means any 1 or more of any combination of--CommentsClose CommentsPermalink





‘(A) a fixed rate, price, or amount, orCommentsClose CommentsPermalink





‘(B) a variable rate, price, or amount,CommentsClose CommentsPermalink





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’ circumstances.CommentsClose CommentsPermalink





‘(4) TREATMENT OF EXCHANGES-CommentsClose CommentsPermalink





‘(A) 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 exchange.CommentsClose CommentsPermalink





‘(B) CERTAIN DEEMED EXCHANGES- In the case of a distribution treated as an exchange for stock under section 302 or 331, the corporation making such distribution shall be treated as having purchased such stock for purposes of this section.CommentsClose CommentsPermalink





‘(f) Exceptions-CommentsClose CommentsPermalink





‘(1) EXCEPTION FOR INITIAL ISSUES- No tax shall be imposed under subsection (a) on any covered transaction with respect to the initial issuance of any security described in subparagraph (A), (B), or (C) of subsection (e)(1).CommentsClose CommentsPermalink





‘(2) EXCEPTION FOR CERTAIN TRADED SHORT-TERM INDEBTEDNESS- A note, bond, debenture, or other evidence of indebtedness which--CommentsClose CommentsPermalink





‘(A) is traded on a trading facility located in the United States, andCommentsClose CommentsPermalink





‘(B) has a fixed maturity of not more than 100 days,CommentsClose CommentsPermalink





shall not be treated as described in subsection (e)(1)(C).CommentsClose CommentsPermalink





‘(3) EXCEPTION FOR SECURITIES LENDING ARRANGEMENTS- No tax shall be imposed under subsection (a) on any covered transaction with respect to which gain or loss is not recognized by reason of section 1058.CommentsClose CommentsPermalink





‘(g) By Whom Paid-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The tax imposed by this section shall be paid by--CommentsClose CommentsPermalink





‘(A) in the case of a transaction which occurs or is cleared on a facility located in the United States, such facility, andCommentsClose CommentsPermalink





‘(B) in the case of a purchase not described in subparagraph (A) which is executed by a broker (as defined in section 6045(c)(1)) which is a United States person, such broker.CommentsClose CommentsPermalink





‘(2) SPECIAL RULES FOR DIRECT, ETC., TRANSACTIONS- In the case of any transaction to which paragraph (1) does not apply, the tax imposed by this section shall be paid by--CommentsClose CommentsPermalink





‘(A) in the case of a transaction described in subsection (d)(1)--CommentsClose CommentsPermalink





‘(i) the purchaser if the purchaser is a United States person, andCommentsClose CommentsPermalink





‘(ii) the seller if the purchaser is not a United States person, andCommentsClose CommentsPermalink





‘(B) in the case of a transaction described in subsection (d)(2)--CommentsClose CommentsPermalink





‘(i) the payor if the payor is a United States person, andCommentsClose CommentsPermalink





‘(ii) the payee if the payor is not a United States person.CommentsClose CommentsPermalink





‘(h) Certain Payments Treated as Separate Transactions- Except as otherwise provided by the Secretary, any payment with respect to a security described in subparagraph (D), (E), or (F) of subsection (e)(1) shall be treated as a separate transaction for purposes of this section, including--CommentsClose CommentsPermalink





‘(1) any net initial payment, net final or terminating payment, or net periodical payment with respect to a notional principal contract (or similar financial instrument),CommentsClose CommentsPermalink





‘(2) any payment with respect to any forward contract (or similar financial instrument), andCommentsClose CommentsPermalink





‘(3) any premium paid with respect to any option (or similar financial instrument).CommentsClose CommentsPermalink





‘(i) Administration- The Secretary shall carry out this section in consultation with the Securities and Exchange Commission and the Commodity Futures Trading Commission.CommentsClose CommentsPermalink





‘(j) Guidance; Regulations- The Secretary shall--CommentsClose CommentsPermalink





‘(1) provide guidance regarding such information reporting concerning covered transactions as the Secretary deems appropriate, andCommentsClose CommentsPermalink





‘(2) prescribe such regulations as are necessary or appropriate to prevent avoidance of the purposes of this section, including the use of non-United States persons in such transactions.’.CommentsClose CommentsPermalink





(b) Clerical Amendment- The table of subchapters for chapter 36 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to subchapter B the following new item:CommentsClose CommentsPermalink





‘Subchapter C. Tax on trading transactions’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to transactions after December 31, 2012.CommentsClose CommentsPermalink