text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Wall Street Fair Share Act''.
  
  SEC. 2. TRANSACTION TAX.
  
      (a) In General.--Chapter 36 of the Internal Revenue Code of 1986 is 
  amended by inserting after subchapter B the following new subchapter:
  
               ``Subchapter C--Tax on Securities Transactions
  
  ``Sec. 4475. Tax on securities transactions.
  
  ``SEC. 4475. TAX ON SECURITIES TRANSACTIONS.
  
      ``(a) Imposition of Tax.--There is hereby imposed a tax on each 
  covered transaction with respect to any security.
      ``(b) Rate of Tax.--
              ``(1) Security.--
                      ``(A) In general.--Except as otherwise provided in 
                  this subsection, the rate of such tax shall be equal to 
                  0.25 percent of the fair market value of the security.
                      ``(B) Derivatives.--In the case of a security 
                  described in subsection (d)(1)(D), the rate of such tax 
                  shall be equal to 0.25 percent of the fair market value 
                  of the underlying property with respect to, or the 
                  notional principal amount of, the derivative financial 
                  instrument involved in such transaction.
                      ``(C) Short-term debt instruments.--In the case of 
                  a covered transaction with respect to a security 
                  described in subsection (d)(1)(C) which has a fixed 
                  maturity date not more than 1 year from the date of 
                  issue, the rate of such tax shall be equal to 0.02 
                  percent of the fair market value of such security.
              ``(2) Hedging transaction.--In the case of any covered 
          transaction which is a hedging transaction (within the meaning 
          of section 1221(a)(7)), subparagraphs (A) and (B) of paragraph 
          (1) shall each be applied by substituting `0.02 percent' for 
          `0.25 percent'.
      ``(c) Covered Transaction.--For purposes of this section, the term 
  `covered transaction' means--
              ``(1) except as provided in paragraph (2), any purchase 
          if--
                      ``(A) such purchase occurs on a trading facility 
                  located in the United States, or
                      ``(B) the purchaser or seller is a United States 
                  person, or
              ``(2) any transaction with respect to a security described 
          in subsection (d)(1)(D), if any party with rights under such 
          security is a United States person or if such transaction is 
          facilitated by a United States person, including a trading 
          facility located in the United States or a broker.
      ``(d) Security and Other Definitions.--For purposes of this 
  section--
              ``(1) In general.--The term `security' means--
                      ``(A) any share of stock in a corporation,
                      ``(B) any partnership or beneficial ownership 
                  interest in a widely held or publicly traded 
                  partnership or trust,
                      ``(C) any note, bond, debenture, or other evidence 
                  of indebtedness issued by a nongovernmental entity the 
                  beneficial ownership of which is traded on an 
                  established market, or
                      ``(D) any evidence of an interest in, or a 
                  derivative financial instrument in--
                              ``(i) any security described in 
                          subparagraph (A), (B), or (C),
                              ``(ii) any specified index, or
                              ``(iii) any other note, bond, or debenture 
                          issued by a nongovernmental entity.
              ``(2) Derivative financial instrument.--The term 
          `derivative financial instrument' means any option, forward 
          contract, short position, notional principal contract, credit 
          default swap, or any similar financial instrument.
              ``(3) Specified index.--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.
      ``(e) Exceptions to Imposition of Tax.--
              ``(1) Exception for initial issues.--No 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 (d)(1).
              ``(2) Exception for retirement accounts, etc.--No tax shall 
          be imposed under subsection (a) on any covered transaction with 
          respect to any security which is held in any plan, account, or 
          arrangement described in section 220, 223, 401(a), 403(a), 
          403(b), 408, 408A, 529, or 530 (including assets held in a 
          segregated asset account described in section 817 as part of 
          any such plan, account, or arrangement).
              ``(3) Exception for certain mutual fund transactions.--No 
          tax shall be imposed under subsection (a) on any covered 
          transaction--
                      ``(A) with respect to the purchase of any interest 
                  in a regulated investment company (as defined in 
                  section 851) which issues only stock which is 
                  redeemable on the demand of the stock holder,
                      ``(B) by a regulated investment company (as so 
                  defined) which is 100 percent owned by 1 or more plans, 
                  accounts, or arrangements described in paragraph (2), 
                  and
                      ``(C) to the extent such tax is properly allocable 
                  to any class of shares of a regulated investment 
                  company (as so defined) which is 100 percent owned by 1 
                  or more plans, accounts, or arrangements described in 
                  paragraph (2).
      ``(f) By Whom Paid.--
              ``(1) In general.--The tax imposed by this section shall be 
          paid by--
                      ``(A) in the case of a transaction which occurs on 
                  a trading facility located in the United States, such 
                  trading facility,
                      ``(B) in the case of a transaction not described in 
                  subparagraph (A) which is executed by a broker, such 
                  broker,
                      ``(C) in the case of a transaction not described in 
                  subparagraph (A) or (B), with respect to a security 
                  described in section (d)(1)(D), the party identified by 
                  the Secretary, or
                      ``(D) in any other case, the purchaser with respect 
                  to the transaction.
              ``(2) Withholding if purchaser is not a united states 
          person.--See section 1447 for withholding by seller if 
          purchaser is a foreign person.
      ``(g) Administration.--The Secretary shall carry out this section 
  in consultation with the Securities and Exchange Commission and the 
  Commodity Futures Trading Commission.
      ``(h) Guidance; Regulations.--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 or the improper allocation of taxes to classes of 
          shares described in subsection (e)(3)(C).''.
      (b) Credit for First $100,000 of Stock Transactions Per Year.--
  Subpart C of part IV of subchapter A of chapter 1 of such Code is 
  amended by inserting after section 36A the following new section:
  
  ``SEC. 36B. CREDIT FOR SECURITIES TRANSACTION TAXES.
  
      ``(a) Allowance of Credit.--In the case of any individual who is a 
  purchaser with respect to a covered transaction, there shall be allowed 
  as a credit against the tax imposed by this subtitle for the taxable 
  year an amount equal to the lesser of--
              ``(1) the aggregate amount of tax imposed under section 
          4475 on covered transactions during the taxable year with 
          respect to which the taxpayer is the purchaser, or
              ``(2) $250 ($125 in the case of a married individual filing 
          a separate return).
      ``(b) Definitions.--For purposes of this section, any term used in 
  this section which is also used in section 4475 shall have the same 
  meaning as when used in section 4475.''.
      (c) Withholding.--Subchapter A of chapter 3 of such Code is amended 
  by adding at the end the following new section:
  
  ``SEC. 1447. WITHHOLDING ON SECURITIES TRANSACTIONS.
  
      ``(a) In General.--In the case of any outbound securities 
  transaction, except as provided in subsection (b), the transferor shall 
  deduct and withhold a tax equal to the tax imposed under section 4475 
  with respect to such transaction.
      ``(b) Derivatives.--In the case of any outbound securities 
  transaction with respect to a security described in section 
  4475(d)(1)(D), the party identified by the Secretary shall so deduct 
  and withhold.
      ``(c) Outbound Securities Transaction.--For purposes of this 
  section, the term `outbound securities transaction' means any covered 
  transaction to which section 4475(a) applies if--
              ``(1) such transaction does not occur on a trading facility 
          located in the United States, and
              ``(2) the purchaser with respect to such transaction in not 
          a United States person.''.
      (d) Conforming Amendments.--
              (1) Section 6211(b)(4)(A) of such Code is amended by 
          inserting ``36B,'' after ``36A,''.
              (2) Section 1324(b)(2) of title 31, United States Code, is 
          amended by inserting ``36B,'' after ``36A,''.
      (e) Clerical Amendments.--
              (1) 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 securities transactions.''.
              (2) The table of sections for subchapter A of chapter 3 of 
          such Code is amended by adding at the end the following new 
          item:
  
  ``Sec. 1447. Withholding on securities transactions.''.
              (3) The table of sections for subpart C of part IV of 
          subchapter A of chapter 1 of such Code is amended by inserting 
          after the item relating to section 36A the following new item:
  
  ``Sec. 36B. Credit for securities transaction taxes.''.
      (f) Effective Date.--The amendments made by this section shall 
  apply to transactions occurring after December 31, 2010.
target: Wall Street Fair Share Act - Amends the Internal Revenue Code to impose an excise tax on securities trading facilities, brokers, and purchasers for certain securities transactions. Sets such tax at .25% of the fair market value of the security traded. Defines "security" to include stock in a corporation, partnership interests, debt instruments, or interests in certain derivative financial instruments. Exempts from such tax an initial issue of securities, transactions in certain retirement, education, and health savings accounts, and transactions in mutual funds. Allows the purchaser of securities a credit against the excise tax for the lesser of the tax incurred or $250 ($500 for married couples filing joint tax returns). Requires withholding of excise tax amounts by the transferor of securities subject to the tax.
feat_title: A bill to amend the Internal Revenue Code of 1986 to impose a tax on certain securities transactions to fund job creation and deficit reduction, and for other purposes.