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119-hr-4035119th CongressWALLET

Wall Street Tax Act of 2025

Sponsored By: Representative Hoyle, Val T. [D-OR-4]

Introduced

Summary

A national tax on trading in securities and derivatives would be created to levy an excise-style charge on each covered transaction and apply a progressive rate schedule over time. The bill also builds new reporting, collection, and enforcement rules tied to exchanges, brokers, and U.S. tax authorities in coordination with securities regulators.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 2 costs, 2 mixed.

What counts as a derivative

If enacted, many contracts would count as derivatives for this tax, including options, futures, swaps, and short positions tied to stocks, debt, commodities, currency, or indexes. Some contracts would be excluded, like certain insurance or annuity contracts, some real property deals that require physical delivery, and intra‑group stock derivatives. If a contract has an embedded derivative that cannot be valued on its own, the whole contract would be treated as a derivative. Treasury could also exclude some securities lending and similar financing deals. These rules would apply to transactions after December 31, 2025.

Tax on foreign subsidiary trades

If enacted, a controlled foreign corporation would be treated as a U.S. person for this trading tax. If a trade is covered only for that reason, and no U.S. exchange or broker must pay, U.S. shareholders would owe the tax. Each shareholder would pay a pro rata share based on stock owned. Treasury would run the rules with the SEC and CFTC and issue reporting guidance. Reporting by U.S. persons would expand to cover these CFC‑based trades. This would apply to transactions after December 31, 2025.

Which trades would be taxed or exempt

If enacted, many trades would count if they happen on a U.S. exchange or involve a U.S. person. Derivatives traded on a U.S. exchange or with any U.S. party would also count. First sales of new issues would not be taxed. An exchange of property would be treated as a sale and a purchase for each party, and many derivative payments would be separate taxable events. American Depository Receipts would be treated like the underlying foreign shares. Short‑term U.S.‑traded debt with 100 days or less to maturity would be exempt. These rules would apply to transactions after December 31, 2025.

Small tax on stock and derivatives

If enacted, each covered trade would face a small tax. The tax would be a percent of the trade’s value. Rates would be 0.02% in 2026, 0.04% in 2027, 0.06% in 2028, 0.08% in 2029, and 0.10% from 2030 on. For securities, the base is fair market value at the time of the trade. For derivatives, the base is the payment amount. Who must pay would depend on where and with whom you trade: a U.S. exchange or a U.S. broker could owe in some cases, otherwise the buyer, seller, payor, or payee would owe based on U.S. person status. This would apply to transactions after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Hoyle, Val T. [D-OR-4]

OR • D

Cosponsors

  • Rep. Smith, Adam [D-WA-9]

    WA • D

    Sponsored 6/17/2025

  • Rep. Jayapal, Pramila [D-WA-7]

    WA • D

    Sponsored 6/17/2025

  • Rep. McGovern, James P. [D-MA-2]

    MA • D

    Sponsored 6/17/2025

  • Rep. Pingree, Chellie [D-ME-1]

    ME • D

    Sponsored 6/17/2025

  • Rep. Schakowsky, Janice D. [D-IL-9]

    IL • D

    Sponsored 6/17/2025

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 6/17/2025

  • Rep. Watson Coleman, Bonnie [D-NJ-12]

    NJ • D

    Sponsored 6/17/2025

  • Rep. Frost, Maxwell [D-FL-10]

    FL • D

    Sponsored 6/26/2025

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 3/24/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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