[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 755 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 755

 To amend the Internal Revenue Code of 1986 to impose an excise tax on 
                         currency transactions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 17, 2011

Mr. Stark (for himself, Mr. Jackson of Illinois, Ms. Lee of California, 
 and Mr. Filner) introduced the following bill; which was referred to 
 the Committee on Ways and Means, and in addition to the Committee on 
  Foreign Affairs, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to impose an excise tax on 
                         currency transactions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Investing in Our 
Future Act of 2011''.
    (b) Findings.--Congress finds the following:
            (1) While Wall Street continues to reap massive profits, 
        the 2008 global economic crisis they helped cause has 
        destabilized economies and impacted the budgets of the United 
        States and impoverished nations, compromising the ability of 
        governments to address pressing needs.
            (2) The scope of the financial crisis distorted our 
        national deficit. The Congressional Budget Office estimates 
        that Federal deficit spending is now at a record $1.5 trillion.
            (3) Millions of people around the world have been pushed 
        into poverty because of the global financial crisis, through no 
        fault of their own.
            (4) The impacts of climate change, disease, and ill health 
        undermine the economies of developing nations and their ability 
        to contribute to a secure, stable world.
            (5) Predictable, adequate, sustainable, long-term, public 
        funding to address global health and climate change in 
        developing countries at the scale needed does not currently 
        exist but it is urgently needed.
            (6) Cutting vital domestic programs such as education, 
        health care, and nutrition assistance to reduce the national 
        debt will have a harmful impact on the long-term prosperity of 
        the country. Alternative revenue generating mechanisms must be 
        considered to reduce the national debt and meet international 
        development and climate needs.
            (7) The financial institutions that caused the financial 
        crisis should play a significant role in providing funds that 
        will help developing countries mitigate and adapt to climate 
        change, fight global HIV/AIDS, improve maternal and child 
        health in impoverished nations, and reduce the national 
        deficit.
            (8) Currency speculation by financial institutions has 
        destabilizing impacts on the real economy and can contribute to 
        financial crises.
            (9) In 2008, $4 trillion in daily currency transactions 
        were undertaken, nearly 80 percent of which by a few major 
        banks, without taxation.
            (10) A tax on the currency market would be paid by these 
        same banks that caused the financial crisis and would generate 
        funds to help reduce our deficit.
            (11) A small levy on currency would curb some speculative 
        transactions, bringing greater stability into the currency 
        market.
            (12) Collection of a small tax would not disrupt legitimate 
        trading in the currency trading markets and would have no 
        significant impact on individual travelers or United States 
        corporations doing business.
            (13) The Secretary of State, Secretary of the Treasury, and 
        the nations in the Organization for Economic Cooperation and 
        Development should work together to implement a broader 
        currency transaction tax to reduce the Federal deficit and fund 
        global health, poverty, and climate change initiatives.

SEC. 2. EXCISE TAX ON CURRENCY TRANSACTIONS.

    (a) In General.--Chapter 36 of the Internal Revenue Code of 1986 is 
amended by inserting after subchapter B the following new subchapter:

                 ``Subchapter C--Currency Transactions

``Sec. 4475. Currency transactions.

``SEC. 4475. CURRENCY TRANSACTIONS.

    ``(a) In General.--There is hereby imposed a tax on each currency 
transaction made by, or on behalf of, a United States person.
    ``(b) Exception for Low-Value Transactions.--
            ``(1) In general.--Subsection (a) shall not apply to any 
        currency transaction made by, or on behalf of, a United States 
        person, if the aggregate value of the currencies acquired by 
        such person in all such transactions made during the calendar 
        year does not exceed $10,000.
            ``(2) Coordination with withholding rules.--Subsection 
        (e)(2) shall not apply to any currency transaction unless the 
        value of the currency acquired by the United States person in 
        such transaction exceeds $10,000. The preceding sentence shall 
        not apply if the person who facilitates such currency 
        transaction knows, or has reason to know, that the exception 
        provided by paragraph (1) does not apply to such transaction.
    ``(c) Amount of Tax.--
            ``(1) In general.--The amount of the tax imposed under 
        subsection (a) with respect to any currency transaction shall 
        be equal to 0.005 percent of the value of the currency acquired 
        in the transaction.
            ``(2) Special rule for currency derivatives.--In the case 
        of any currency derivative, the value of the currency acquired 
        in the transaction shall be treated for purposes of this 
        section as being equal to--
                    ``(A) in the case of a forward contract, the value 
                of the currency purchased or sold forward,
                    ``(B) in the case of a notional principal contract, 
                the value of the notional principal amount of the 
                contract,
                    ``(C) in the case of an option, the value of the 
                currency that would be acquired in the event the option 
                were exercised, and
                    ``(D) in the case of any other currency derivative, 
                the value as determined by the Secretary.
            ``(3) Valuation of currency.--For purposes of this section, 
        the valuation of any currency shall be determined in the 
        taxpayer's functional currency (within the meaning of section 
        985) at the spot rate on the date of the transaction.
    ``(d) Currency Transaction.--For purposes of this section--
            ``(1) In general.--The term `currency transaction' means--
                    ``(A) the exchange of any currency for another 
                currency, and
                    ``(B) entering into any currency derivative.
            ``(2) Currency derivative.--The term `currency derivative' 
        means--
                    ``(A) any currency notional principal contract, and
                    ``(B) any option, forward contract, short position, 
                hedge, or similar financial instrument with respect to 
                any currency or currency notional principal contract.
    ``(e) Liability for Tax; Withholding.--
            ``(1) Liability for tax.--The tax imposed under subsection 
        (a) with respect to any currency transaction shall be paid by 
        the United States person referred to in subsection (a). Such 
        person shall be allowed a credit against such tax in the amount 
        withheld as tax under paragraph (2) with respect to such 
        transaction.
            ``(2) Withholding by currency transaction facilitators.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), each United States person which 
                facilitates a currency transaction by, or on behalf of, 
                a United States person shall deduct and withhold from 
                the amount involved in such transaction a tax equal to 
                the amount of the tax imposed under section 4475 with 
                respect to such transaction.
                    ``(B) Amounts withheld only once.--The Secretary 
                shall prescribe regulations or other guidance to ensure 
                that only one United States person deducts and 
                withholds the amount described in subparagraph (A) with 
                respect to each currency transaction. Such regulations 
                or other guidance shall (subject to such exceptions as 
                the Secretary may prescribe) require--
                            ``(i) in the case of a currency transaction 
                        which is confirmed and matched by a United 
                        States person, that such person so deduct and 
                        withhold such amount, and
                            ``(ii) in the case of a currency 
                        transaction not described in clause (i) which 
                        is settled by a United States person, that such 
                        person so deduct and withhold such amount.
            ``(3) Coordination with other sections.--For purposes of so 
        much of subtitle F (other than section 7205) as relates to 
        chapter 24, amounts which are subject to withholding under 
        paragraph (2) shall be treated as if they were wages paid by an 
        employer to an employee (and amounts deducted and withheld 
        under paragraph (2) shall be treated as if deducted and 
        withheld under section 3402).
    ``(f) Application to Expanded Affiliated Groups.--
            ``(1) In general.--For purposes of this section, all 
        members of the same expanded affiliated group shall be treated 
        as one person for purposes of this section.
            ``(2) Expanded affiliated group.--For purposes of this 
        subsection, the term `expanded affiliated group' means an 
        affiliated group as defined in section 1504(a), determined--
                    ``(A) by substituting `more than 50 percent' for 
                `at least 80 percent' each place it appears, and
                    ``(B) without regard to paragraphs (2) and (3) of 
                section 1504(b).
        A partnership or any other entity (other than a corporation) 
        shall be treated as a member of an expanded affiliated group if 
        such entity is controlled (within the meaning of section 
        954(d)(3)) by members of such group (including any entity 
        treated as a member of such group by reason of this 
        sentence).''.
    (b) Clerical Amendment.--The table of subchapters for chapter 36 of 
such Code is amended by inserting after the item relating to subchapter 
B the following new item:

                ``subchapter c. currency transactions''.

    (c) Effective Date.--The amendments made by this section shall 
apply to transactions after December 31, 2011.

SEC. 3. FUNDING FOR CHILD CARE.

    (a) Child Care Assistance Trust Fund.--
            (1) In general.--There is established in the Treasury of 
        the United States a trust fund to be known as the ``Child Care 
        Assistance Trust Fund'', consisting of such amounts as may be 
        appropriated or credited to the Child Care Assistance Trust 
        Fund as provided in this section.
            (2) Transfer to trust fund of amounts equivalent to certain 
        taxes.--There are hereby appropriated to the Child Care 
        Assistance Trust Fund, out of any money in the Treasury not 
        otherwise appropriated, amounts equivalent to 10 percent of the 
        taxes received in the Treasury under section 4475 of the 
        Internal Revenue Code of 1986.
            (3) Expenditures from trust fund.--Amounts in the Child 
        Care Assistance Trust Fund shall be available, as provided by 
        appropriation Acts, for making expenditures to carry out 
        subsection (b).
            (4) Management of trust fund.--For purposes of subchapter B 
        of chapter 98 of the Internal Revenue Code of 1986, the 
        provisions of this subsection shall be treated as provisions of 
        subchapter A of such chapter.
    (b) Child Care Assistance Grants.--
            (1) In general.--Any appropriation under subsection (a)(3) 
        from the Child Care Assistance Trust Fund shall be allocated 
        among the States as an increase in the amount determined under 
        section 418(a)(1) of the Social Security Act in the same 
        proportion as the amount determined under such section with 
        respect to such State (determined without regard to this 
        subsection) bears to the aggregate amounts so determined with 
        respect to all of the States.
            (2) Funding to be additional.--It is the sense of the 
        Congress that amounts made available under this subsection 
        shall be in addition to (and shall not be a replacement for) 
        other funding for child care assistance.

SEC. 4. MULTILATERAL GLOBAL HEALTH PROGRAMS.

    (a) Multilateral Global Health Trust Fund.--
            (1) In general.--There is established in the Treasury of 
        the United States a trust fund to be known as the 
        ``Multilateral Global Health Trust Fund'', consisting of such 
        amounts as may be appropriated or credited to the Multilateral 
        Global Health Trust Fund as provided in this section.
            (2) Transfer to trust fund of amounts equivalent to certain 
        taxes.--There are hereby appropriated to the Multilateral 
        Global Health Trust Fund, out of any money in the Treasury not 
        otherwise appropriated, amounts equivalent to 25 percent of the 
        taxes received in the Treasury under section 4475 of the 
        Internal Revenue Code of 1986.
            (3) Expenditures from trust fund.--Amounts in the 
        Multilateral Global Health Trust Fund shall be available, as 
        provided by appropriation Acts, for making expenditures to 
        carry out subsection (b).
            (4) Management of trust fund.--For purposes of subchapter B 
        of chapter 98 of the Internal Revenue Code of 1986, the 
        provisions of this subsection shall be treated as provisions of 
        subchapter A of such chapter.
    (b) Multilateral Global Health Grant Program.--
            (1) In general.--The Secretary of State shall make grants 
        to assist developing countries in addressing HIV/AIDS, 
        tuberculosis, malaria, maternal mortality, family planning, 
        neglected diseases, and other health issues affecting 
        developing countries.
            (2) Eligibility for grants.--Grants under paragraph (1) may 
        be made to--
                    (A) the Global Fund to Fight AIDS, Tuberculosis and 
                Malaria to provide grants described in paragraph (1), 
                and
                    (B) other multilateral health funding mechanisms 
                which the Secretary certifies--
                            (i) provide a significant majority of their 
                        total funding to programs in the form of 
                        grants,
                            (ii) include independent and external 
                        technical review of programs in the awarding of 
                        funding,
                            (iii) include governance structures that 
                        involve donor governments, implementing 
                        governments, civil society, and affected 
                        communities as equal decisionmakers,
                            (iv) provide funding based on plans 
                        developed by implementing countries through 
                        country-level processes that include equal and 
                        meaningful involvement of civil society and 
                        impacted communities,
                            (v) require measures of performance of all 
                        projects and formal mechanisms that condition 
                        continued financing on successful performance 
                        and outcomes, and
                            (vi) include mechanisms for strict 
                        financial accountability and provides 
                        transparency of all decisions, evaluations, and 
                        finances through publically accessible 
                        documents.
            (3) Funding to be additional.--It is the sense of the 
        Congress that grants made under this subsection shall be in 
        addition to (and shall not be a replacement for) other funding 
        for global health initiatives in developing countries.

SEC. 5. GLOBAL CLIMATE CHANGE ADAPTATION AND MITIGATION.

    (a) Global Climate Change Adaptation and Mitigation Trust Fund.--
            (1) In general.--There is established in the Treasury of 
        the United States a trust fund to be known as the ``Global 
        Climate Change Adaptation and Mitigation Trust Fund'', 
        consisting of such amounts as may be appropriated or credited 
        to the Global Climate Change Adaptation and Mitigation Trust 
        Fund as provided in this section.
            (2) Transfer to trust fund of amounts equivalent to certain 
        taxes.--There are hereby appropriated to the Global Climate 
        Change Adaptation and Mitigation Trust Fund, out of any money 
        in the Treasury not otherwise appropriated, amounts equivalent 
        to 25 percent of the taxes received in the Treasury under 
        section 4475 of the Internal Revenue Code of 1986.
            (3) Expenditures from trust fund.--Amounts in the Global 
        Climate Change Adaptation and Mitigation Trust Fund shall be 
        available, as provided by appropriation Acts, for making 
        expenditures to carry out subsection (b).
            (4) Management of trust fund.--For purposes of subchapter B 
        of chapter 98 of the Internal Revenue Code of 1986, the 
        provisions of this subsection shall be treated as provisions of 
        subchapter A of such chapter.
    (b) Global Climate Change Adaptation and Mitigation Program.--
            (1) In general.--Any appropriation under subsection (a)(3) 
        from the Global Climate Change Adaptation and Mitigation Trust 
        Fund shall be made for contributions to the Green Climate Fund, 
        and the Adaptation Fund, established pursuant to the United 
        Nations Framework Convention on Climate Change (UNFCCC).
            (2) Funding to be additional.--It is the sense of the 
        Congress that contributions made under this subsection shall be 
        in addition to (and shall not be a replacement for) other 
        funding for global climate change adaptation and mitigation 
        initiatives in developing countries.

SEC. 6. DEFICIT REDUCTION.

    The amount of taxes received in the Treasury under section 4475 of 
the Internal Revenue Code of 1986 (reduced by amounts appropriated 
under sections 3, 4, and 5) shall be used for deficit reduction, except 
that in the case of a fiscal year for which there is no Federal budget 
deficit, such amount shall be used to reduce the Federal debt (in such 
manner as the Secretary of the Treasury considers appropriate).
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