Wall Street Tax Act (H.R. 328)
This bill imposes a 0.1% excise tax on certain purchases of stocks, bonds, and derivatives. The tax applies to the purchase of a security if (1) such purchase occurs on, or is subject to the rules of, a qualified board or exchange located in the United States; or (2) the purchaser or seller is a U.S. person.
The bill exempts from such tax (1) initial issues of securities; and (2) any note, bond, debenture, or other evidence of indebtedness which is traded on or is subject to the rules of, a qualified board or exchange located in the United States, and has a fixed maturity of not more than 100 days.
The tax applies to transactions by a controlled foreign corporation and must be paid by its U.S. shareholders.
Sponsor: Rep. Peter A. DeFazio (Democrat, Oregon, District 4)
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Opponents say
• "Financial transaction taxes at the federal or state level unfairly target America’s mom-and-pop investors and working families saving for retirement." Source: Chris Iacovella (Chief Executive of the American Securities Association)
• "[A broad financial transaction tax will do] unintended damage to everyday families saving for retirement or higher education." Source: Charles Kurtz (Vanguard spokesman)
Proponents say
• "Some days high-frequency traders trade billions of shares that they sometimes hold for only seconds or less. They reap enormous financial benefits for themselves but add no value to our economy." Source: Rep. Peter DeFazio (Democrat, Oregon, District 4)
• "The Wall Street Tax Act is a common-sense way to help restore a measure of fairness and balance to our economy. It would make wealthy investors who have profited throughout this pandemic pay a fairer share of taxes. The $777 billion it would raise is desperately needed to recover from this COVID-19 depression and to promote growth in our economy..." Source: Frank Clemente (Executive Director of Americans for Tax Fairness)
• "The Wall Street Tax Act would reduce incentives for Wall Street’s most reckless and least valuable speculative activity and instead encourage Wall Street to find new ways to make money from longer term, productive investments that create jobs, and develop products and services that make the U.S. competitive in a global economy." Source: Kelly Ross (AFL-CIO Policy Director)
- DeFazio Introduces Financial Transaction Tax Act to Rein in Wall Street and Generate Revenue for National Priorities
- Wall Street Tax Act will land on Main Street Investors (Investment News)
- For and against: Taxing Wall Street (Trade Monitor)
- Wall Street Transaction Tax Wins Backers on GameStop Furor (Bloomberg Tax News)
