Bill > HR880

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 introduces a tax of 0.03 percent on the fair market value of "covered transactions," which include purchases or sales of various financial instruments like stocks, bonds, partnership interests, and derivative financial instruments (such as options, futures, and forward contracts) if the transaction occurs or is cleared in the United States, or if either the buyer or seller is a U.S. person. The bill also includes provisions for taxing transactions involving certain foreign corporations controlled by U.S. persons. Importantly, it offers an offset to this new tax by allowing a credit against income tax for contributions made to certain tax-favored accounts, including qualified retirement plans, Archer MSAs, health savings accounts, qualified tuition programs, and Coverdell education savings accounts, with the credit amount matching the proposed transaction tax rate on those contributions. The tax is intended to apply to transactions occurring after December 31, 2013.