I 

111TH CONGRESS 

2D SESSION H. R. 5783 

To amend the Internal Revenue Code of 1986 to impose an excise tax 

on currency transactions. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 20, 2010 

Mr. STARK introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

an excise tax on currency transactions. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; FINDINGS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Investing in Our Future Act of 2010’’. 

6 (b) FINDINGS.—Congress finds the following: 

7 (1) While Wall Street continues to reap massive 

8 profits, the 2008 global economic crisis they helped 

9 cause has destabilized economies and impacted the 


pwalker on DSK8KYBLC1PROD with BILLS
2 

•HR 5783 IH

1 budgets of the United States and impoverished na2 tions, compromising the ability of governments to 

3 address pressing needs. 

4 (2) Currency speculation has destabilizing im5 pacts on the real economy and can contribute to fi6 nancial crises. 

7 (3) Millions of people around the world have 

8 been pushed into poverty because of the global fi9 nancial crisis, through no fault of their own. 

10 (4) The impacts of climate change, disease, and 

11 ill health undermine the economies of developing na12 tions and their ability to contribute to a secure, sta13 ble world. 

14 (5) Predictable, adequate, sustainable, long15 term funding to address global health and climate 

16 change in developing countries at the scale needed 

17 does not currently exist. 

18 (6) The United States has been a world leader 

19 in fighting against HIV/AIDS, Tuberculosis and 

20 Malaria and new science has shown that success 

21 against these major killers is possible within a gen22 eration, yet a greater commitment of resources is 

23 needed to save more lives. 

24 (7) Additional investments are needed to in25 crease the global health workforce and improve maVerDate Mar 15 2010 03:44 Jul 21, 2010 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783

pwalker on DSK8KYBLC1PROD with BILLS
3 

•HR 5783 IH

1 ternal and child health, reproductive health, and 

2 combat neglected tropical diseases in impoverished 

3 nations. 

4 (8) Developing countries bear little responsi5 bility for causing climate change, but they will be 

6 the most negatively impacted and lack the resources 

7 to adapt to and mitigate climate change. 

8 (9) According to the Department of Defense’s 

9 Quadrennial Defense Review, global climate change 

10 could accelerate instability and conflict around the 

11 world and become a security threat for the United 

12 States. 

13 (10) Global climate change has already begun 

14 to displace people and exacerbate competition and 

15 conflict over natural resources, increasing hunger, 

16 poverty and social inequities in developing countries. 

17 (11) The Secretariat of the United Nations 

18 Framework Convention on Climate Change 

19 (UNFCCC) has estimated that by 2030 developing 

20 countries will require $176 billion annually in addi21 tional investment for climate change mitigation and 

22 the World Bank estimates that $75 to $100 billion 

23 is needed per year by 2050 for adaptation in devel24 oping countries. 


pwalker on DSK8KYBLC1PROD with BILLS
4 

•HR 5783 IH

1 (12) At the December 2009 UNFCCC climate 

2 negotiations in Copenhagen, the United States made 

3 a commitment to work with other nations to mobilize 

4 $100 billion a year by 2020 to help developing coun5 tries adapt to the impacts of climate change and 

6 mitigate emissions from climate change. 

7 (13) There are approximately 15.3 million chil8 dren in the United States under the age of 6 who 

9 require childcare while their parents work. 

10 (14) Only one in seven children who are eligible 

11 for Federal, direct childcare assistance receives it. 

12 (15) In the majority of States, the cost of 

13 childcare for a year is more than tuition at a four14 year public university. 

15 (16) Affordable and quality childcare is essen16 tial for working parents and is necessary for contin17 ued economic growth in the United States. 

18 (17) Wall Street is enjoying a resurgence in 

19 profits and executive bonuses following the $700 bil20 lion Troubled Asset Relief Program bailout. 

21 (18) In 2008, $4 trillion in daily currency 

22 transactions were undertaken, nearly 80 percent of 

23 which by a few major banks, without taxation. 


pwalker on DSK8KYBLC1PROD with BILLS
5 

•HR 5783 IH

1 (19) A small levy on currency would curb some 

2 speculative transactions, bringing greater stability 

3 into the currency market. 

4 (20) To address the global impacts of the eco5 nomic crisis, revenue from a small currency trans6 action tax should be invested to provide predictable, 

7 sustainable funding to address global health, climate 

8 change, and the lack of affordable childcare in the 

9 United States. 

10 (21) Collection of a small tax would not disrupt 

11 legitimate trading in the currency trading markets 

12 and would have no significant impact on individual 

13 travelers or United States corporations doing busi14 ness. 

15 (22) The Secretary of State, Secretary of the 

16 Treasury, and the nations in the Organization for 

17 Economic Cooperation and Development should 

18 work together to implement a broader currency 

19 transaction tax to fund global health, poverty, and 

20 climate change initiatives. 

21 SEC. 2. EXCISE TAX ON CURRENCY TRANSACTIONS. 

22 (a) IN GENERAL.—Chapter 36 of the Internal Rev23 enue Code of 1986 is amended by inserting after sub24 chapter B the following new subchapter: 


pwalker on DSK8KYBLC1PROD with BILLS
6 

•HR 5783 IH

1 ‘‘Subchapter C—Currency Transactions 

‘‘Sec. 4475. Currency transactions. 

2 ‘‘SEC. 4475. CURRENCY TRANSACTIONS. 

3 ‘‘(a) IN GENERAL.—There is hereby imposed a tax 

4 on each currency transaction made by, or on behalf of, 

5 a United States person. 

6 ‘‘(b) EXCEPTION FOR LOW-VALUE TRANSACTIONS.— 

7 ‘‘(1) IN GENERAL.—Subsection (a) shall not 

8 apply to any currency transaction made by, or on 

9 behalf of, a United States person, if the aggregate 

10 value of the currencies acquired by such person in 

11 all such transactions made during the calendar year 

12 does not exceed $10,000. 

13 ‘‘(2) COORDINATION WITH WITHHOLDING

14 RULES.—Subsection (e)(2) shall not apply to any 

15 currency transaction unless the value of the currency 

16 acquired by the United States person in such trans17 action exceeds $10,000. The preceding sentence 

18 shall not apply if the person who facilitates such 

19 currency transaction knows, or has reason to know, 

20 that the exception provided by paragraph (1) does 

21 not apply to such transaction. 

22 ‘‘(c) AMOUNT OF TAX.— 

23 ‘‘(1) IN GENERAL.—The amount of the tax im24 posed under subsection (a) with respect to any curVerDate Mar 15 2010 03:44 Jul 21, 2010 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783

pwalker on DSK8KYBLC1PROD with BILLS
7 

•HR 5783 IH

1 rency transaction shall be equal to 0.005 percent of 

2 the value of the currency acquired in the trans3 action. 

4 ‘‘(2) SPECIAL RULE FOR CURRENCY DERIVA5 TIVES.—In the case of any currency derivative, the 

6 value of the currency acquired in the transaction 

7 shall be treated for purposes of this section as being 

8 equal to— 

9 ‘‘(A) in the case of a forward contract, the 

10 value of the currency purchased or sold for11 ward, 

12 ‘‘(B) in the case of a notional principal 

13 contract, the value of the notional principal 

14 amount of the contract, 

15 ‘‘(C) in the case of an option, the value of 

16 the currency that would be acquired in the 

17 event the option were exercised, and 

18 ‘‘(D) in the case of any other currency de19 rivative, the value as determined by the Sec20 retary. 

21 ‘‘(3) VALUATION OF CURRENCY.—For purposes 

22 of this section, the valuation of any currency shall 

23 be determined in the taxpayer’s functional currency 

24 (within the meaning of section 985) at the spot rate 

25 on the date of the transaction. 


pwalker on DSK8KYBLC1PROD with BILLS
8 

•HR 5783 IH

1 ‘‘(d) CURRENCY TRANSACTION.—For purposes of 

2 this section— 

3 ‘‘(1) IN GENERAL.—The term ‘currency trans4 action’ means— 

5 ‘‘(A) the exchange of any currency for an6 other currency, and 

7 ‘‘(B) entering into any currency derivative. 

8 ‘‘(2) CURRENCY DERIVATIVE.—The term ‘cur9 rency derivative’ means— 

10 ‘‘(A) any currency notional principal con11 tract, and 

12 ‘‘(B) any option, forward contract, short 

13 position, hedge, or similar financial instrument 

14 with respect to any currency or currency no15 tional principal contract. 

16 ‘‘(e) LIABILITY FOR TAX; WITHHOLDING.— 

17 ‘‘(1) LIABILITY FOR TAX.—The tax imposed 

18 under subsection (a) with respect to any currency 

19 transaction shall be paid by the United States per20 son referred to in subsection (a). Such person shall 

21 be allowed a credit against such tax in the amount 

22 withheld as tax under paragraph (2) with respect to 

23 such transaction. 

24 ‘‘(2) WITHHOLDING BY CURRENCY TRANS25 ACTION FACILITATORS.— 


pwalker on DSK8KYBLC1PROD with BILLS
9 

•HR 5783 IH

1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), each United States person 

3 which facilitates a currency transaction by, or 

4 on behalf of, a United States person shall de5 duct and withhold from the amount involved in 

6 such transaction a tax equal to the amount of 

7 the tax imposed under section 4475 with re8 spect to such transaction. 

9 ‘‘(B) AMOUNTS WITHHELD ONLY ONCE.— 

10 The Secretary shall prescribe regulations or 

11 other guidance to ensure that only one United 

12 States person deducts and withholds the 

13 amount described in subparagraph (A) with re14 spect to each currency transaction. Such regula15 tions or other guidance shall (subject to such 

16 exceptions as the Secretary may prescribe) re17 quire— 

18 ‘‘(i) in the case of a currency trans19 action which is confirmed and matched by 

20 a United States person, that such person 

21 so deduct and withhold such amount, and 

22 ‘‘(ii) in the case of a currency trans23 action not described in clause (i) which is 

24 settled by a United States person, that 


pwalker on DSK8KYBLC1PROD with BILLS
10 

•HR 5783 IH

1 such person so deduct and withhold such 

2 amount. 

3 ‘‘(3) COORDINATION WITH OTHER SECTIONS.— 

4 For purposes of so much of subtitle F (other than 

5 section 7205) as relates to chapter 24, amounts 

6 which are subject to withholding under paragraph 

7 (2) shall be treated as if they were wages paid by 

8 an employer to an employee (and amounts deducted 

9 and withheld under paragraph (2) shall be treated 

10 as if deducted and withheld under section 3402). 

11 ‘‘(f) APPLICATION TO EXPANDED AFFILIATED

12 GROUPS.— 

13 ‘‘(1) IN GENERAL.—For purposes of this sec14 tion, all members of the same expanded affiliated 

15 group shall be treated as one person for purposes of 

16 this section. 

17 ‘‘(2) EXPANDED AFFILIATED GROUP.—For pur18 poses of this subsection, the term ‘expanded affili19 ated group’ means an affiliated group as defined in 

20 section 1504(a), determined— 

21 ‘‘(A) by substituting ‘more than 50 per22 cent’ for ‘at least 80 percent’ each place it ap23 pears, and 

24 ‘‘(B) without regard to paragraphs (2) and 

25 (3) of section 1504(b). 


pwalker on DSK8KYBLC1PROD with BILLS
11 

•HR 5783 IH

1 A partnership or any other entity (other than a cor2 poration) shall be treated as a member of an ex3 panded affiliated group if such entity is controlled 

4 (within the meaning of section 954(d)(3)) by mem5 bers of such group (including any entity treated as 

6 a member of such group by reason of this sen7 tence).’’. 

8 (b) CLERICAL AMENDMENT.—The table of sub9 chapters for chapter 36 of such Code is amended by in10 serting after the item relating to subchapter B the fol11 lowing new item: 

‘‘SUBCHAPTER C. CURRENCY TRANSACTIONS’’. 

12 SEC. 3. FUNDING FOR CHILD CARE. 

13 (a) CHILD CARE ASSISTANCE TRUST FUND.— 

14 (1) IN GENERAL.—There is established in the 

15 Treasury of the United States a trust fund to be 

16 known as the ‘‘Child Care Assistance Trust Fund’’, 

17 consisting of such amounts as may be appropriated 

18 or credited to the Child Care Assistance Trust Fund 

19 as provided in this section. 

20 (2) TRANSFER TO TRUST FUND OF AMOUNTS

21 EQUIVALENT TO CERTAIN TAXES.—There are hereby 

22 appropriated to the Child Care Assistance Trust 

23 Fund, out of any money in the Treasury not other24 wise appropriated, amounts equivalent to 20 percent 


pwalker on DSK8KYBLC1PROD with BILLS
12 

•HR 5783 IH

1 of the taxes received in the Treasury under section 

2 4475 of the Internal Revenue Code of 1986. 

3 (3) EXPENDITURES FROM TRUST FUND.— 

4 Amounts in the Child Care Assistance Trust Fund 

5 shall be available, as provided by appropriation Acts, 

6 for making expenditures to carry out subsection (b). 

7 (4) MANAGEMENT OF TRUST FUND.—For pur8 poses of subchapter B of chapter 98 of the Internal 

9 Revenue Code of 1986, the provisions of this sub10 section shall be treated as provisions of subchapter 

11 A of such chapter. 

12 (b) CHILD CARE ASSISTANCE GRANTS.— 

13 (1) IN GENERAL.—Any appropriation under 

14 subsection (a)(3) from the Child Care Assistance 

15 Trust Fund shall be allocated among the States as 

16 an increase in the amount determined under section 

17 418(a)(1) of the Social Security Act in the same 

18 proportion as the amount determined under such 

19 section with respect to such State (determined with20 out regard to this subsection) bears to the aggregate 

21 amounts so determined with respect to all of the 

22 States. 

23 (2) FUNDING TO BE ADDITIONAL.—It is the 

24 sense of the Congress that amounts made available 

25 under this subsection shall be in addition to (and 


pwalker on DSK8KYBLC1PROD with BILLS
13 

•HR 5783 IH

1 shall not be a replacement for) other funding for 

2 child care assistance. 

3 SEC. 4. MULTILATERAL GLOBAL HEALTH PROGRAMS. 

4 (a) MULTILATERAL GLOBAL HEALTH TRUST

5 FUND.— 

6 (1) IN GENERAL.—There is established in the 

7 Treasury of the United States a trust fund to be 

8 known as the ‘‘Multilateral Global Health Trust 

9 Fund’’, consisting of such amounts as may be appro10 priated or credited to the Multilateral Global Health 

11 Trust Fund as provided in this section. 

12 (2) TRANSFER TO TRUST FUND OF AMOUNTS

13 EQUIVALENT TO CERTAIN TAXES.—There are hereby 

14 appropriated to the Multilateral Global Health Trust 

15 Fund, out of any money in the Treasury not other16 wise appropriated, amounts equivalent to 40 percent 

17 of the taxes received in the Treasury under section 

18 4475 of the Internal Revenue Code of 1986. 

19 (3) EXPENDITURES FROM TRUST FUND.— 

20 Amounts in the Multilateral Global Health Trust 

21 Fund shall be available, as provided by appropria22 tion Acts, for making expenditures to carry out sub23 section (b). 

24 (4) MANAGEMENT OF TRUST FUND.—For pur25 poses of subchapter B of chapter 98 of the Internal 


pwalker on DSK8KYBLC1PROD with BILLS
14 

•HR 5783 IH

1 Revenue Code of 1986, the provisions of this sub2 section shall be treated as provisions of subchapter 

3 A of such chapter. 

4 (b) MULTILATERAL GLOBAL HEALTH GRANT PRO5 GRAM.— 

6 (1) IN GENERAL.—The Secretary of State shall 

7 make grants to assist developing countries in ad8 dressing HIV/AIDS, tuberculosis, malaria, maternal 

9 mortality, family planning, neglected diseases, and 

10 other health issues affecting developing countries. 

11 (2) ELIGIBILITY FOR GRANTS.—Grants under 

12 paragraph (1) may be made to— 

13 (A) the Global Fund to Fight AIDS, Tu14 berculosis and Malaria to provide grants de15 scribed in paragraph (1), and 

16 (B) other multilateral health funding 

17 mechanisms which the Secretary certifies— 

18 (i) provide a significant majority of 

19 their total funding to programs in the form 

20 of grants, 

21 (ii) include independent and external 

22 technical review of programs in the award23 ing of funding, 

24 (iii) include governance structures 

25 that involve donor governments, impleVerDate Mar 15 2010 03:44 Jul 21, 2010 Jkt 089200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783

pwalker on DSK8KYBLC1PROD with BILLS
15 

•HR 5783 IH

1 menting governments, civil society, and af2 fected communities as equal decision-mak3 ers, 

4 (iv) provide funding based on plans 

5 developed by implementing countries 

6 through country-level processes that in7 clude equal and meaningful involvement of 

8 civil society and impacted communities, 

9 (v) require measures of performance 

10 of all projects and formal mechanisms that 

11 condition continued financing on successful 

12 performance and outcomes, and 

13 (vi) include mechanisms for strict fi14 nancial accountability and provides trans15 parency of all decisions, evaluations, and 

16 finances through publically accessible docu17 ments. 

18 (3) FUNDING TO BE ADDITIONAL.—It is the 

19 sense of the Congress that grants made under this 

20 subsection shall be in addition to (and shall not be 

21 a replacement for) other funding for global health 

22 initiatives in developing countries. 


pwalker on DSK8KYBLC1PROD with BILLS
16 

•HR 5783 IH

1 SEC. 5. GLOBAL CLIMATE CHANGE ADAPTATION AND MITI2 GATION. 

3 (a) GLOBAL CLIMATE CHANGE ADAPTATION AND

4 MITIGATION TRUST FUND.— 

5 (1) IN GENERAL.—There is established in the 

6 Treasury of the United States a trust fund to be 

7 known as the ‘‘Global Climate Change Adaptation 

8 and Mitigation Trust Fund’’, consisting of such 

9 amounts as may be appropriated or credited to the 

10 Global Climate Change Adaptation and Mitigation 

11 Trust Fund as provided in this section. 

12 (2) TRANSFER TO TRUST FUND OF AMOUNTS

13 EQUIVALENT TO CERTAIN TAXES.—There are hereby 

14 appropriated to the Global Climate Change Adapta15 tion and Mitigation Trust Fund, out of any money 

16 in the Treasury not otherwise appropriated, amounts 

17 equivalent to 40 percent of the taxes received in the 

18 Treasury under section 4475 of the Internal Rev19 enue Code of 1986. 

20 (3) EXPENDITURES FROM TRUST FUND.— 

21 Amounts in the Global Climate Change Adaptation 

22 and Mitigation Trust Fund shall be available, as 

23 provided by appropriation Acts, for making expendi24 tures to carry out subsection (b). 

25 (4) MANAGEMENT OF TRUST FUND.—For pur26 poses of subchapter B of chapter 98 of the Internal 


pwalker on DSK8KYBLC1PROD with BILLS
17 

•HR 5783 IH

1 Revenue Code of 1986, the provisions of this sub2 section shall be treated as provisions of subchapter 

3 A of such chapter. 

4 (b) GLOBAL CLIMATE CHANGE ADAPTATION AND

5 MITIGATION GRANT PROGRAM.— 

6 (1) IN GENERAL.—Except as provided in para7 graph (2), any appropriation under subsection (a)(3) 

8 from the Global Climate Change Adaptation and 

9 Mitigation Trust Fund shall be used for contribu10 tions to a United Nations Framework Convention on 

11 Climate Change (UNFCCC) global climate fund for 

12 adaptation and mitigation which— 

13 (A) is fully accountable to the Conference 

14 of Parties of the UNFCCC, in which the Con15 ference of Parties selects members of the execu16 tive board to manage distinct funding windows, 

17 including for adaptation and mitigation; ap18 proves rules, guidelines, priorities, and policies 

19 proposed by the executive board; and receives 

20 and determines the allocation and disbursement 

21 of funding, 

22 (B) is independent in management and 

23 governance from existing financial institutions, 

24 (C) is fully consistent with Article 11 of 

25 the UNFCCC, 


pwalker on DSK8KYBLC1PROD with BILLS
18 

•HR 5783 IH

1 (D) provides funds only in the form of 

2 grants for adaptation, 

3 (E) has an Executive Board made up of 

4 equitable and balanced representation within 

5 the five United Nations regions and additional 

6 representation from countries most vulnerable 

7 to climate change and from civil society in de8 veloped and developing countries, 

9 (F) ensures that in areas where any activi10 ties or programs are planned, local commu11 nities, particularly the most vulnerable popu12 lations therein, are engaged through adequate 

13 disclosure of information, public participation 

14 and consultation, and have decision-making 

15 power in, and consent to, how funding is used, 

16 monitored and evaluated, 

17 (G) provides transparent and accountable 

18 processes for the handling of financing, and 

19 (H) provides recipient governments the 

20 choice to nominate a national implementing en21 tity which meets agreed fiduciary standards to 

22 directly apply for and access funding. 

23 (2) TRANSITIONAL RULES.—If an appropriation 

24 under subsection (a)(3) from the Global Climate 

25 Change Adaptation and Mitigation Trust Fund is 


pwalker on DSK8KYBLC1PROD with BILLS
19 

•HR 5783 IH

1 made before the UNFCCC global climate fund for 

2 adaptation and mitigation described in paragraph 

3 (1) has been established, such appropriation shall be 

4 used for contributions to the Adaptation Fund es5 tablished by Parties to the Kyoto Protocol of the 

6 UNFCCC, the Least Developed Countries Fund of 

7 the UNFCCC, or one or more multilateral funds 

8 that is agreed to by Parties to the UNFCCC or the 

9 Kyoto Protocol, subject to a certification by the Sec10 retary of the Treasury that the program to which 

11 such contributions are made— 

12 (A) provides funds only in the form of 

13 grants for adaptation, 

14 (B) ensures that in areas where any activi15 ties or programs are planned, local commu16 nities, particularly the most vulnerable popu17 lations therein, are engaged through adequate 

18 disclosure of information, public participation 

19 and consultation, and have decisionmaking 

20 power in, and consent to, how funding is used, 

21 monitored and evaluated, 

22 (C) has a governance structure with equi23 table and balanced representation of all parties 

24 within a transparent system of governance, 


pwalker on DSK8KYBLC1PROD with BILLS
20 

•HR 5783 IH

1 (D) provides transparent and accountable 

2 processes for the handling of financing, 

3 (E) provides recipient governments the 

4 choice to nominate a national implementing en5 tity which meets agreed fiduciary standards to 

6 directly apply for and access funding, and 

7 (F) is fully consistent with article 11.1 of 

8 the UNFCCC which states that the fund must 

9 function under the guidance of and be account10 able to the Conference of the Parties. 

11 (3) FUNDING TO BE ADDITIONAL.—It is the 

12 sense of the Congress that grants made under this 

13 subsection shall be in addition to (and shall not be 

14 a replacement for) other funding for global climate 

15 change adaptation and mitigation initiatives in de16 veloping countries. 

Æ 


pwalker on DSK8KYBLC1PROD with BILLS