United States HR 4870: Wall Street Tax Act of 2023

Bill Text

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118TH CONGRESS
1ST SESSION H. R. 4870
To amend the Internal Revenue Code of 1986 to impose a tax on certain
trading transactions.
IN THE HOUSE OF REPRESENTATIVES
JULY 25, 2023
Ms. HOYLE of Oregon (for herself, Mr. BLUMENAUER, Mr. CARSON, Mr.
COHEN, Mr. GARCI ́A of Illinois, Mr. GRIJALVA, Ms. JAYAPAL, Mr.
KHANNA, Mr. MCGOVERN, Ms. NORTON, Ms. PINGREE, Mr. POCAN, Ms.
PRESSLEY, Ms. SCHAKOWSKY, Mr. SMITH of Washington, Mr. TAKANO,
Ms. TLAIB, Ms. TOKUDA, and Mrs. WATSON COLEMAN) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to impose
a tax on certain trading transactions.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Wall Street Tax Act 4
of 2023’’. 5
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SEC. 2. TRANSACTION TAX. 1
(a) IN GENERAL.—Chapter 36 of the Internal Rev-2
enue Code of 1986 is amended by inserting after sub-3
chapter B the following new subchapter: 4
‘‘Subchapter C—Tax on Trading Transactions 5
‘‘Sec. 4475. Tax on trading transactions.
‘‘Sec. 4476. Derivative defined.
‘‘SEC. 4475. TAX ON TRADING TRANSACTIONS. 6
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 7
a tax on each covered transaction with respect to any secu-8
rity. 9
‘‘(b) RATE OF TAX.—The tax imposed under sub-10
section (a) with respect to any covered transaction shall 11
be 0.1 percent of the specified base amount with respect 12
to such covered transaction. 13
‘‘(c) SPECIFIED BASE AMOUNT.—For purposes of 14
this section, the term ‘specified base amount’ means— 15
‘‘(1) except as provided in paragraph (2), the 16
fair market value of a security (determined as of the 17
time of the covered transaction), and 18
‘‘(2) in the case of any payment with respect to 19
a derivative, the amount of such payment. 20
‘‘(d) COVERED TRANSACTION.—For purposes of this 21
section— 22
‘‘(1) IN GENERAL.—The term ‘covered trans-23
action’ means— 24
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‘‘(A) except as provided in subparagraph 1
(B), any purchase if— 2
‘‘(i) such purchase occurs on, or is 3
subject to the rules of, a qualified board or 4
exchange located in the United States, or 5
‘‘(ii) the purchaser or seller is a 6
United States person, and 7
‘‘(B) any transaction with respect to a de-8
rivative if— 9
‘‘(i) such derivative is traded on, or is 10
subject to the rules of, a qualified board or 11
exchange located in the United States, or 12
‘‘(ii) any party with rights under such 13
derivative is a United States person. 14
‘‘(2) EXCEPTION FOR INITIAL ISSUES.—No tax 15
shall be imposed under subsection (a) on any cov-16
ered transaction with respect to the initial issuance 17
of any security described in subparagraph (A), (B), 18
or (C) of subsection (e)(1). 19
‘‘(e) DEFINITIONS AND SPECIAL RULES.—For pur-20
poses of this section— 21
‘‘(1) SECURITY.—For purposes of this section, 22
the term ‘security’ means— 23
‘‘(A) any share of stock in a corporation, 24
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‘‘(B) any partnership or beneficial owner-1
ship interest in a partnership or trust, 2
‘‘(C) except as provided in paragraph (2), 3
any note, bond, debenture, or other evidence of 4
indebtedness, and 5
‘‘(D) any derivative (as defined in section 6
4476). 7
‘‘(2) EXCEPTION FOR CERTAIN TRADED SHORT- 8
TERM INDEBTEDNESS.—A note, bond, debenture, or 9
other evidence of indebtedness which— 10
‘‘(A) is traded on, or is subject to the rules 11
of, a qualified board or exchange located in the 12
United States, and 13
‘‘(B) has a fixed maturity of not more 14
than 100 days, 15
shall not be treated as described in paragraph 16
(1)(C). 17
‘‘(3) QUALIFIED BOARD OR EXCHANGE.—The 18
term ‘qualified board or exchange’ has the meaning 19
given such term by section 1256(g)(7). 20
‘‘(f) BY WHOM PAID.— 21
‘‘(1) IN GENERAL.—The tax imposed by this 22
section shall be paid by— 23
‘‘(A) in the case of a transaction which oc-24
curs on, or is subject to the rules of, a qualified 25
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board or exchange located in the United States, 1
such qualified board or exchange, and 2
‘‘(B) in the case of a purchase not de-3
scribed in subparagraph (A) which is executed 4
by a broker (as defined in section 6045(c)(1)) 5
which is a United States person, such broker. 6
‘‘(2) SPECIAL RULES FOR DIRECT, ETC., 7
TRANSACTIONS.—In the case of any transaction to 8
which par