Bill > S2127

This bill introduces the "Wall Street Tax Act of 2025," which establishes a new tax on certain financial trading transactions. The bill imposes a graduated tax rate on transactions involving securities and derivatives, starting at 0.02% in 2026 and increasing to 0.1% by 2030. The tax applies to purchases of stocks, partnership interests, bonds, and derivatives made on U.S. exchanges or by U.S. persons. The tax would be paid by the exchange, broker, purchaser, or seller depending on the specific circumstances of the transaction. The bill provides detailed definitions of what constitutes a "covered transaction" and a "derivative," including various types of financial instruments and contracts. It also includes specific exceptions for certain transactions, such as initial security issues, short-term debt, and some specific types of financial arrangements like insurance contracts and commodities used in normal business operations. The tax is designed to be administered by the Secretary of the Treasury in consultation with the Securities and Exchange Commission and the Commodity Futures Trading Commission. Controlled foreign corporations are also subject to the tax, with U.S. shareholders potentially responsible for payment in certain scenarios. The legislation is set to take effect for transactions after December 31, 2025.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2127/all-info