“To amend the Internal Revenue Code of 1986 to impose a tax on certain trading transactions.”
No CRS summary available for this bill.
This section establishes a new tax on covered transactions involving securities (i.e., corporate stock, partnership or trust interests, certain debt instruments, derivatives), imposed on the fair market value of the security (or payment amount for derivatives) at rates escalating from 0.02% for transactions after December 31, 2025, and before January 1, 2027, to 0.1% after December 31, 2029. Covered transactions include (1) purchases on or subject to rules of a U.S. qualified board or exchange (i.e., certain regulated trading venues) or involving a U.S. person as purchaser or seller and (2) derivative transactions similarly situated; exceptions apply to initial issuances and traded short-term debt with ≤100 days to maturity. The tax is paid by (1) the U.S. qualified board or exchange for transactions thereon, (2) a U.S. broker for certain other purchases, or (3) otherwise the U.S. purchaser/seller or payor/payee; controlled foreign corporations are treated as U.S. persons, with their U.S. shareholders paying the tax pro rata based on ownership. Exchanges are treated as sales and purchases, and derivative payments as separate transactions.