Bill > S410

This bill, titled the "Wall Street Trading and Speculators Tax Act," proposes to amend the Internal Revenue Code of 1986 to impose a new tax on certain financial trading transactions. Specifically, it establishes a tax of 0.03 percent on the fair market value of "covered transactions," which include most purchases of securities like stocks, bonds, and partnership interests, as well as derivative financial instruments and notional principal contracts, if these transactions occur or are cleared in the United States, or if a U.S. person is involved. The bill defines "security" broadly to encompass various financial instruments and specifies that certain payments related to derivatives will be treated as separate transactions subject to the tax. To mitigate the impact, the bill also introduces a tax credit for individuals equal to 0.03 percent of their contributions to qualified tax-favored accounts, such as retirement plans, health savings accounts, and education savings accounts. The tax is intended to be paid by the trading facility or broker in many cases, but can also be paid by the purchaser or seller, or the payor or payee, depending on the transaction. The bill also includes provisions for applying the tax to transactions by controlled foreign corporations, treating them as U.S. persons for this purpose, and outlines administrative responsibilities for the Secretary of the Treasury in consultation with the Securities and Exchange Commission and the Commodity Futures Trading Commission. These amendments are set to take effect for transactions after December 31, 2013.