Congress eyes modest tax on Wall Street trading to fund public priorities
H.R. 4035 — Wall Street Tax Act of 2025 · Filed by Valerie Hoyle (D-OR) · 9 cosponsors · Introduced Jun 17, 2025 · Referred to committee
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What it does
This bill imposes a small tax on financial trading transactions—starting at 0.02% in 2026 and rising to 0.1% by 2030—on stocks, bonds, derivatives, and similar securities traded on U.S. exchanges or involving U.S. persons. The tax is collected by exchanges, brokers, or the parties to the transaction, depending on the type of trade. Revenue from the tax would go to the federal government.
Why we flagged it
The bill's core mechanism is straightforward: a progressive tax on securities and derivatives trading. It is not disguised or misdirected; the title accurately reflects the substance.
What the text implies
- The tax may reduce market liquidity and increase bid-ask spreads, potentially raising costs for ordinary investors who trade less frequently but still participate in markets.
- High-frequency trading firms and market-makers may relocate operations or trading activity to non-U.S. exchanges to avoid the tax, reducing U.S. market competitiveness and tax revenue.
The full analysis lists 4 implications of this text.
Who stands to gain
U.S. federal government (revenue collection); Long-term retail investors (reduced high-frequency trading volatility); Pension funds and endowments (reduced market noise)