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.

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:

Currency transactions

Sec. 4475. Currency transactions.

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.

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.

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.

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.

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).