To amend the Internal Revenue Code of 1986 to impose a tax on certain securities transactions to fund job creation and deficit reduction.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Let Wall Street Pay for the 
Restoration of Main Street Act of 2009''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Our Nation continues to be hamstrung by a recession 
        that led to the current jobless recovery and record deficits.
            (2) The unemployment rate is now 10.2 percent and most 
        economists expect it to climb higher.
            (3) The Federal deficit has reached $1,400,000,000,000 for 
        2009.
            (4) The jobless recovery suggests that the Federal 
        Government must continue to prime the economy, but the record 
        deficit is a real obstacle.
            (5) Following their $700,000,000,000 bailout, Wall Street 
        is now enjoying a resurgence in profits and bonuses.
            (6) A robust economy needs more than Wall Street profits. 
        Main Street America is strengthened by good paying jobs for all 
        Americans, not just Wall Street bankers.
            (7) To restore Main Street America, a small securities 
        transaction tax on Wall Street should be invested in job 
        creation for Main Street America.
            (8) A securities transaction tax on Wall Street has a 
        negligible impact on the average investor and pension funds.
            (9) This transfer tax would be assessed on the sale and 
        purchase of financial instruments such as stocks, options, and 
        futures. A quarter percent (0.25 percent) tax on financial 
        transactions could raise approximately $150,000,000,000 a year.
            (10) The United States had a transfer tax from 1914 to 
        1966. The Revenue Act of 1914 (Act of Oct. 22, 1914 (ch. 331, 
        38 Stat. 745)) levied a 0.2 percent tax on all sales or 
        transfers of stock. In 1932, Congress more than doubled the tax 
        to help financial recovery and job creation during the Great 
        Depression.
            (11) Half the revenue generated by this transaction tax 
        will be used to directly reduce the deficit.
            (12) Half of the revenue generated by this transaction tax 
        will deposited in a Job Creation Reserve to fund the creation 
        of good paying jobs and put Americans back to work rebuilding 
        our Nation.

SEC. 3. JOB CREATION RESERVE FOR INVESTMENTS IN MIDDLE CLASS JOBS.

    (a) In General.--For budgetary purposes, half the additional 
Federal receipts by reason of the enactment of this Act shall be held 
in a separate account to be known as the ``Job Creation Reserve''. The 
Job Creation Reserve shall be available to offset the additional costs 
from the Surface Transportation Authorization Act of 2009 and 
subsequent legislation to fund job creation in the United States 
provided that the subsequent legislation--
            (1) promotes jobs that pay at least the median wage of the 
        United States;
            (2) promotes manufacturing and other jobs we are losing to 
        unfair overseas competition; and
            (3) prohibits any recipient of the Troubled Asset Relief 
        Program from directly benefitting from any funds in this 
        reserve.
    (b) Procedure for Adjustments.--
            (1) Budget committee chairman.--After the reporting of a 
        bill or joint resolution, or the offering of an amendment 
        thereto or the submission of a conference report thereon, 
        providing funding for the purposes set forth in subsection (a) 
        in excess of the amounts provided for those purposes for fiscal 
        year 2010, the chairman of the Committee on the Budget of the 
        applicable House of Congress shall make the adjustments set 
        forth in paragraph (2) for the amount of new budget authority 
        and outlays in that measure and the outlays flowing from that 
        budget authority.
            (2) Matters to be adjusted.--The adjustments referred to in 
        paragraph (1) are to be made to--
                    (A) the discretionary spending limits, if any, set 
                forth in the appropriate concurrent resolution on the 
                budget;
                    (B) the allocations made pursuant to the 
                appropriate concurrent resolution on the budget 
                pursuant to section 302(a) of the Congressional Budget 
                Act of 1974; and
                    (C) the budget aggregates contained in the 
                appropriate concurrent resolution on the budget as 
                required by section 301(a) of the Congressional Budget 
                Act of 1974.
            (3) Amounts of adjustments.--The adjustments referred to in 
        paragraphs (1) and (2) shall not exceed half the receipts 
        estimated by the Congressional Budget Office that are 
        attributable to this Act for the fiscal year in which the 
        adjustments are made.

SEC. 4. DEFICIT REDUCTION.

    It is the Sense of Congress that half the additional Federal 
receipts by reason of the enactment of this Act shall not be expended 
and therefore reduce the Federal deficit. The Committee on the Budget 
shall clearly report this deficit reduction in the committee report for 
the budget resolution.

SEC. 5. RECOUPMENT OF WALL STREET BAILOUT.

    (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.--
            ``(1) Stocks.--There is hereby imposed a tax on each 
        covered transaction in a stock contract of 0.25 percent of the 
        value of the instruments involved in such transaction.
            ``(2) Futures.--There is hereby imposed a tax on each 
        covered transaction in a futures contract of 0.02 percent of 
        the value of the instruments involved in such transaction.
            ``(3) Swaps.--There is hereby imposed a tax on each covered 
        transaction in a swaps contract of 0.02 percent of the value of 
        the instruments involved in such transaction.
            ``(4) Credit default swaps.--There is hereby imposed a tax 
        on each covered transaction in a credit default swaps contract 
        of 0.02 percent of the value of the instruments involved in 
        such transaction.
            ``(5) Options.--There is hereby imposed a tax on each 
        covered transaction in an options contract with respect to a 
        transaction described in paragraph (1), (2), (3), or (4) of--
                    ``(A) the rate imposed with respect to such 
                underlying transaction under paragraph (1), (2), (3), 
                or (4) (as the case may be), multiplied by
                    ``(B) the premium paid on such option.
    ``(b) Exception for Retirement Accounts, etc.--No tax shall be 
imposed under subsection (a) with respect to any stock contract, 
futures contract, swaps contract, credit default swap, or options 
contract 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.
    ``(c) Exception for Interests in Mutual Funds.--No tax shall be 
imposed under subsection (a) with respect to the purchase or sale of 
any interest in a regulated investment company (as defined in section 
851) or of any derivative of such an interest.
    ``(d) 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, or
                    ``(B) in any other case, the purchaser with respect 
                to the transaction.
            ``(2) Withholding if buyer is not a united states person.--
        See section 1447 for withholding by seller if buyer is a 
        foreign person.
    ``(e) Covered Transaction.--The term `covered transaction' means 
any purchase or sale if--
            ``(1) such purchase or sale occurs on a trading facility 
        located in the United States, or
            ``(2) the purchaser or seller is a United States person.
    ``(f) Administration.--The Secretary shall carry out this section 
in consultation with the Securities and Exchange Commission and the 
Commodity Futures Trading Commission.''.
    (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 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 ($500 in the case of a joint return).
    ``(b) Aggregation Rule.--For purposes of this section, all persons 
treated as a single employer under subsection (a) or (b) of section 52, 
or subsection (m) or (o) of section 414, shall be treated as one 
taxpayer.
    ``(c) 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, the transferor shall deduct and withhold a tax equal to 
the tax imposed under section 4475 with respect to such transaction.
    ``(b) 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,''.
            (3) 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.''.
            (4) 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.''.
            (5) 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.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to transactions occurring more than 180 days after the date of 
the enactment of this Act.

Summary: Let Wall Street Pay for the Restoration of Main Street Act of 2009 - Amends the Internal Revenue Code to impose an excise tax on certain securities transactions, including transactions in stocks, futures, swaps, credit default swaps, and options. Exempts transactions for securities held in tax-exempt retirement accounts, health savings accounts, educational accounts, and regulated investment companies. Allows the purchaser of securities a credit against the excise tax for the lesser of the tax incurred or $250 . Requires withholding of excise tax amounts by the transferor of securities subject to the tax. Requires one-half of the tax revenues raised by this Act to be held in a separate Job Creation Reserve account to offset additional costs from the Surface Transportation Authorization Act of 2009 and subsequent legislation to fund job creation. Expresses the sense of Congress that one-half of the tax revenues raised by this Act shall be used to reduce the federal deficit.