Congress proposes tax on Wall Street trading to fund public priorities
S. 2127 — Wall Street Tax Act of 2025 · Filed by Brian Schatz (D-HI) · 5 cosponsors · Introduced Jun 18, 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. Revenue from the tax would go to the federal government.
Why we flagged it
The bill's core mechanism is a progressive excise tax on securities and derivatives trading. It is straightforward in design and purpose: to tax financial transactions at rates that escalate over four years.
What the text implies
- The tax applies to derivatives and complex financial instruments, which may increase compliance costs for smaller brokers and financial advisors, potentially raising fees for retail investors.
- Controlled foreign corporations are treated as U.S. persons for tax purposes, extending the tax to some offshore trading activity and potentially affecting multinational firms' hedging strategies.
The full analysis lists 4 implications of this text.
Who stands to gain
U.S. federal government (revenue collection); Long-term investors and buy-and-hold retail investors (reduced high-frequency trading competition); Market stability advocates (reduced speculative volatility)