The Wall Street Tax Act of 2025 would impose a new federal tax on financial trading transactions involving stocks, bonds, partnerships, and derivatives. The tax would start at 0.02 percent in 2026 and gradually increase to 0.1 percent by 2030, applied to the value of each transaction. The tax would apply to trades on U.S. exchanges and trades involving U.S. persons or entities, with exchanges, brokers, and individual traders responsible for paying the tax depending on the transaction type. The bill exempts initial securities offerings and very short-term debt instruments (under 100 days), and includes special rules for derivatives, foreign corporations with U.S. shareholders, and hedging activities in normal business operations. The legislation becomes effective for transactions after December 31, 2025, and would be administered by the Internal Revenue Service in consultation with the Securities and Exchange Commission and Commodity Futures Trading Commission.
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