text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Putting Main Street FIRST Act'' or 
  as the ``Putting Main Street FIRST: Finishing Irresponsible Reckless 
  Speculative Trading 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 Trading Transactions
  
  ``Sec. 4475. Tax on trading transactions.
  
  ``SEC. 4475. TAX ON TRADING TRANSACTIONS.
  
      ``(a) Imposition of Tax.--There is hereby imposed a tax on each 
  covered transaction with respect to any security.
      ``(b) Rate of Tax.--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) Specified Base Amount.--For purposes of this section, the 
  term `specified base amount' means--
              ``(1) except as provided in paragraph (2), the fair market 
          value of a security (determined as of the time of the covered 
          transaction), and
              ``(2) in the case of any payment with respect to a 
          derivative, the amount of such payment.
      ``(d) Covered Transaction.--For purposes of this section--
              ``(1) In general.--The term `covered transaction' means--
                      ``(A) except as provided in subparagraph (B), any 
                  purchase if--
                              ``(i) such purchase occurs on, or is 
                          subject to the rules of, a qualified board or 
                          exchange located in the United States, or
                              ``(ii) the purchaser or seller is a United 
                          States person, and
                      ``(B) any transaction with respect to a derivative 
                  if--
                              ``(i) such derivative is traded on, or is 
                          subject to the rules of, a qualified board or 
                          exchange located in the United States, or
                              ``(ii) any party with rights under such 
                          derivative is a United States person.
              ``(2) Exceptions from tax.--
                      ``(A) 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 (e)(1).
                      ``(B) Exception for certain traded short-term 
                  indebtedness.--A note, bond, debenture, or other 
                  evidence of indebtedness which--
                              ``(i) is traded on, or is subject to the 
                          rules of, a qualified board or exchange located 
                          in the United States, and
                              ``(ii) has a fixed maturity of not more 
                          than 100 days,
                  shall not be treated as described in subsection 
                  (e)(1)(C).
      ``(e) Definitions.--For purposes of this section--
              ``(1) Security.--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, and
                      ``(D) any derivative.
              ``(2) Derivative.--
                      ``(A) In general.--The term `derivative' means any 
                  contract (including any option, forward contract, 
                  futures contract, short position, swap, or similar 
                  contract) the value of which, or any payment or other 
                  transfer with respect to which, is (directly or 
                  indirectly) determined by reference to one or more of 
                  the following:
                              ``(i) Any security described in 
                          subparagraph (A), (B), or (C) of paragraph (1).
                              ``(ii) Any commodity which is actively 
                          traded (within the meaning of section 
                          1092(d)(1)).
                              ``(iii) Any currency.
                              ``(iv) Any rate, price, amount, index, 
                          formula, or algorithm.
                              ``(v) Any other item as the Secretary may 
                          prescribe.
                  Such term shall not include any item described in 
                  clauses (i) through (v).
                      ``(B) Exceptions from treatment as derivatives.--
                              ``(i) Securities lending, sale-repurchase, 
                          and similar financing transactions.--To the 
                          extent provided by the Secretary, the term 
                          `derivative' shall not include the right to the 
                          return of the same or substantially identical 
                          securities transferred in a securities lending 
                          transaction, sale-repurchase transaction, or 
                          similar financing transaction.
                              ``(ii) Insurance contracts, annuities, and 
                          endowments.--The term `derivative' shall not 
                          include any insurance, annuity, or endowment 
                          contract issued by an insurance company to 
                          which subchapter L applies (or issued by any 
                          foreign corporation to which such subchapter 
                          would apply if such foreign corporation were a 
                          domestic corporation).
              ``(3) Qualified board or exchange.--The term `qualified 
          board or exchange' has the meaning given such term by section 
          1256(g)(7).
      ``(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, 
                  or is subject to the rules of, a qualified board or 
                  exchange located in the United States, such qualified 
                  board or exchange, 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., transactions.--In 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)(A)--
                              ``(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)(1)(B)--
                              ``(i) the payor if the payor is a United 
                          States person, and
                              ``(ii) the payee if the payor is not a 
                          United States person.
      ``(g) Treatment of Exchanges and Payments With Respect to 
  Derivatives.--For purposes of this section--
              ``(1) Treatment of exchanges.--
                      ``(A) In general.--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) Certain deemed exchanges.--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.
              ``(2) Payments with respect to derivatives treated as 
          separate transactions.--Except as otherwise provided by the 
          Secretary, any payment with respect any derivative shall be 
          treated as a separate transaction for purposes of this section.
      ``(h) Application to Transactions by Controlled Foreign 
  Corporations.--
              ``(1) In general.--For purposes of this section, a 
          controlled foreign corporation shall be treated as a United 
          States person.
              ``(2) Special rules for payment of tax on direct, etc., 
          transactions.--In the case of any transaction which is a 
          covered transaction solely by reason of paragraph (1) and which 
          is not described in subsection (f)(1)--
                      ``(A) Payment by united states shareholders.--Any 
                  tax which would (but for this paragraph) be payable 
                  under subsection (f)(2) by the controlled foreign 
                  corporation shall, in lieu thereof, be paid by the 
                  United States shareholders of such controlled foreign 
                  corporation as provided in subparagraph (B).
                      ``(B) Pro rata shares.--Each such United States 
                  shareholder shall pay the same proportion of such tax 
                  as--
                              ``(i) the stock which such United States 
                          shareholder owns (within the meaning of section 
                          958(a)) in such controlled foreign corporation, 
                          bears to
                              ``(ii) the stock so owned by all United 
                          States shareholders in such controlled foreign 
                          corporation.
                      ``(C) Definitions.--For purposes of this 
                  subsection, the terms `United States shareholder' and 
                  `controlled foreign corporation' have the meanings 
                  given such terms in sections 951(b) and 957(a), 
                  respectively.
      ``(i) Administration.--The Secretary shall carry out this section 
  in consultation with the Securities and Exchange Commission and the 
  Commodity Futures Trading Commission.
      ``(j) 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.''.
      (b) Credit With Respect to Certain Tax-Favored Accounts To Offset 
  Transaction Tax.--Subpart C of part IV of subchapter A of chapter 1 of 
  such Code is amended by inserting after section 36B the following new 
  section:
  
  ``SEC. 36C. OFFSET FOR TRANSACTION TAX ON CONTRIBUTIONS TO CERTAIN TAX-
                FAVORED ACCOUNTS.
  
      ``(a) In General.--There shall be allowed as a credit against the 
  tax imposed by this subtitle for the taxable year an amount equal to 
  0.03 percent of the qualified tax-favored account contributions of the 
  taxpayer for the taxable year.
      ``(b) Qualified Tax-Favored Account Contributions.--For purposes of 
  this section, the term `qualified tax-favored account contributions' 
  means, with respect to any taxable year, the sum of--
              ``(1) with respect to qualified retirement plans (as 
          defined in section 4974(c)) of the taxpayer, the amount 
          contributed to such plans for such taxable year to the extent 
          that such contributions are allowable as a deduction or are 
          excludable from gross income (or, in the case of a Roth IRA (as 
          defined in section 408A(b)), the amount contributed),
              ``(2) with respect to Archer MSAs of the taxpayer, the 
          amount allowed as a deduction under section 220 for such 
          taxable year,
              ``(3) with respect to health savings accounts of the 
          taxpayer, the amount allowed as a deduction under section 223 
          for such taxable year, plus
              ``(4) with respect to qualified tuition programs (as 
          defined in section 529), qualified ABLE programs (as defined in 
          section 529A), and Coverdell education savings accounts (as 
          defined in section 530), with respect to which the taxpayer is 
          the designated beneficiary (or, in the case of a designated 
          beneficiary with respect to whom another taxpayer is allowed a 
          deduction under section 151, such other taxpayer in lieu of 
          such designated beneficiary), the amount contributed for such 
          taxable year.''.
      (c) Information Reporting With Respect to Controlled Foreign 
  Corporations.--Section 6038(a)(1)(B) of such Code is amended by 
  inserting ``and transactions which are covered transactions for 
  purposes of section 4475 by reason of the application of section 
  4475(h)(1) to such corporation'' before the semicolon at the end.
      (d) Conforming Amendments.--
              (1) Section 1324(b)(2) of title 31, United States Code, is 
          amended by inserting ``, 36C'' after ``36B''.
              (2) The table of sections for subpart C of part IV of 
          subchapter A of chapter 1 of the Internal Revenue Code of 1986 
          is amended by inserting before the item relating to section 37 
          the following new item:
  
  ``Sec. 36C. Offset for transaction tax on contributions to certain tax-
                              favored accounts.''.
              (3) The table of subchapters for chapter 36 of such Code is 
          amended by inserting after the item relating to subchapter B 
          the following new item:
  
               ``subchapter c. tax on trading transactions''.
  
      (e) Effective Date.--The amendments made by this section shall 
  apply to transactions after December 31, 2018.
target: Putting Main Street FIRST Act or the Putting Main Street FIRST: Finishing Irresponsible Reckless Speculative Trading Act This bill amends the Internal Revenue Code to impose a .03% excise tax on 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. A &quot;security&quot; includes: (1) any share of stock in a corporation, (2) any partnership or beneficial ownership interest in a partnership or trust; (3) any note, bond, debenture, or other evidence of indebtedness; and (4) derivatives that meet specified criteria.  The tax applies to transactions with respect to a derivative if: (1) the derivative is traded on, or is subject to the rules of, a qualified board or exchange located in the United States; or (2) any party with rights under the derivative 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.  The bill allows an offset against such tax for contributions to certain tax-favored savings accounts. 
feat_title: Putting Main Street FIRST Act