1.This Act may be cited as the
Wall Street Trading and Speculators
Tax Act
.
2.
(a)Chapter 36 of the Internal Revenue Code of 1986 is
amended by inserting after subchapter B the following new subchapter:
CTax on Trading
Transactions
Sec. 4475. Tax on trading transactions.
4475.Tax on trading
transactions
(a)There is hereby imposed a
tax on each covered transaction with respect to any security.
(b)The tax imposed under
subsection (a) with respect to any covered transaction shall be 0.03 percent of
the specified base amount with respect to such covered transaction.
(c)For purposes of this section, the term specified
base amount
means—
(1)except as provided
in paragraph (2), the fair market value of the security (determined as of the
time of the covered transaction), and
(2)in the case of any
payment described in subsection (h), the amount of such payment.
(d)For purposes of this section, the term covered
transaction
means—
(1)except as provided
in paragraph (2), any purchase if—
(A)such purchase
occurs or is cleared on a facility located in the United States, or
(B)the purchaser or
seller is a United States person, and
(2)any transaction
with respect to a security described in subparagraph (D), (E), or (F) of
subsection (e)(1), if—
(A)such security is
traded or cleared on a facility located in the United States, or
(B)any party with
rights under such security is a United States person.
(e)Security and
other definitionsFor purposes of this section—
(1)The term security means—
(A)any share of stock
in a corporation,
(B)any partnership or
beneficial ownership interest in a partnership or trust,
(C)any note, bond,
debenture, or other evidence of indebtedness,
(D)any evidence of an
interest in, or a derivative financial instrument with respect to, any security
or securities described in subparagraph (A), (B), or (C),
(E)any derivative
financial instrument with respect to any currency or commodity, and
(F)any other
derivative financial instrument any payment with respect to which is calculated
by reference to any specified index.
(2)Derivative
financial instrumentThe term derivative financial
instrument includes any option, forward contract, futures contract,
notional principal contract, or any similar financial instrument.
(3)The term specified index means any 1 or more
of any combination of—
(A)a fixed rate,
price, or amount, or
(B)a variable rate,
price, or amount,
which is
based on any current objectively determinable information which is not within
the control of any of the parties to the contract or instrument and is not
unique to any of the parties’ circumstances.(4)
(A)An exchange shall be
treated as the sale of the property transferred and a purchase of the property
received by each party to the exchange.
(B)In the case of a distribution treated as an exchange
for stock under section 302 or 331, the corporation making such distribution
shall be treated as having purchased such stock for purposes of this
section.
(f)
(1)Exception for
initial issuesNo tax shall
be imposed under subsection (a) on any covered transaction with respect to the
initial issuance of any security described in subparagraph (A), (B), or (C) of
subsection (e)(1).
(2)Exception for
certain traded short-term indebtednessA note, bond, debenture,
or other evidence of indebtedness which—
(A)is traded on a
trading facility located in the United States, and
(B)has a fixed
maturity of not more than 100 days,
shall not
be treated as described in subsection (e)(1)(C).(3)Exception for
securities lending arrangementsNo tax shall be imposed under
subsection (a) on any covered transaction with respect to which gain or loss is
not recognized by reason of section 1058.
(g)
(1)The tax imposed by
this section shall be paid by—
(A)in the case of a
transaction which occurs or is cleared on a facility located in the United
States, such facility, and
(B)in the case of a
purchase not described in subparagraph (A) which is executed by a broker (as
defined in section 6045(c)(1)) which is a United States person, such
broker.
(2)Special rules
for direct, etc., transactionsIn the case of any transaction to
which paragraph (1) does not apply, the tax imposed by this section shall be
paid by—
(A)in the case of a
transaction described in subsection (d)(1)—
(i)the purchaser if
the purchaser is a United States person, and
(ii)the seller if the
purchaser is not a United States person, and
(B)in the case of a
transaction described in subsection (d)(2)—
(i)the payor if the
payor is a United States person, and
(ii)the payee if the
payor is not a United States person.
(h)Certain payments
treated as separate transactionsExcept as otherwise provided by the
Secretary, any payment with respect to a security described in subparagraph
(D), (E), or (F) of subsection (e)(1) shall be treated as a separate
transaction for purposes of this section, including—
(1)any net initial
payment, net final or terminating payment, or net periodical payment with
respect to a notional principal contract (or similar financial
instrument),
(2)any payment with
respect to any forward contract (or similar financial instrument), and
(3)any premium paid
with respect to any option (or similar financial instrument).
(i)The
Secretary shall carry out this section in consultation with the Securities and
Exchange Commission and the Commodity Futures Trading Commission.
(j)The Secretary shall—
(1)provide guidance
regarding such information reporting concerning covered transactions as the
Secretary deems appropriate, and
(2)prescribe such
regulations as are necessary or appropriate to prevent avoidance of the
purposes of this section, including the use of non-United States persons in
such
transactions.
.
(b)The table of subchapters for chapter 36 of the Internal
Revenue Code of 1986 is amended by inserting after the item relating to
subchapter B the following new item:
Subchapter C. Tax on trading
transactions.
.
(c)The amendments made by this section shall apply to
transactions after December 31, 2012.