Wall Street Tax Act of 2025

Higher trading tax for investors

If enacted, this bill would add a small tax on many securities trades. It would apply to each covered transaction and use the trade value as the tax base. For derivatives, the tax base would be the payment amount and each payment would be a separate taxable transaction. The rate would phase up by date: 0.02% for trades after Dec 31, 2025 and before Jan 1, 2027; 0.04% after Dec 31, 2026 and before Jan 1, 2028; 0.06% after Dec 31, 2027 and before Jan 1, 2029; 0.08% after Dec 31, 2028 and before Jan 1, 2030; and 0.10% after Dec 31, 2029. The tax would generally apply to purchases on U.S. qualified exchanges and to many trades involving U.S. persons. Qualified U.S. exchanges, U.S. brokers, or buyers and sellers would normally remit the tax depending on the trade. Initial issuances of stock, partnership or trust interests, and some short-term debt would be exempt. The Treasury would work with the SEC and CFTC and could issue reporting and anti-avoidance rules. Controlled foreign corporations would be treated as U.S. persons for this tax, and U.S. shareholders could bear pro rata payment obligations.