“A bill 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., shares of stock, partnership or trust interests, notes or bonds excluding short-term debt of 100 days or less, and derivatives), effective for transactions after December 31, 2025. A covered transaction includes (1) any purchase on or subject to the rules of a U.S. qualified board or exchange, or involving a U.S. person as purchaser or seller (excluding initial issuances); and (2) any derivative transaction on or subject to U.S. exchange rules or involving a U.S. person with rights under the derivative. The tax equals a specified percentage of the security's fair market value (or derivative payment amount), phased in as follows: 0.02% for 2026, 0.04% for 2027, 0.06% for 2028, 0.08% for 2029, and 0.1% thereafter; controlled foreign corporations are treated as U.S. persons, with their U.S. shareholders responsible for payment on certain transactions. The tax is paid by the U.S. exchange or broker where applicable; otherwise, by the U.S. purchaser, seller, payor, or payee (or U.S. shareholders of controlled foreign corporations); exchanges are treated as sales and purchases.