I 
111TH CONGRESS 
1ST SESSION H. R. 1068 
To amend the Internal Revenue Code of 1986 to impose a tax on certain 
securities transactions to the extent required to recoup the net cost 
of the Troubled Asset Relief Program. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 13, 2009 
Mr. DEFAZIO (for himself, Mr. WELCH, Ms. SUTTON, Mr. CAPUANO, Mr. WU, 
Mr. STARK, Ms. DELAURO, and Ms. EDWARDS of Maryland) introduced 
the following bill; which was referred to the Committee on Ways and 
Means 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
a tax on certain securities transactions to the extent 
required to recoup the net cost of the Troubled Asset 
Relief Program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Let Wall Street Pay 
for Wall Street’s Bailout Act of 2009’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) The Bush Administration allocated the first 
$350 billion of TARP funds in a manner that has 
outraged the Nation by failing to provide the most 
basic oversight of the funds. 
(2) Congress has declined to block the remain-
ing $350 billion of TARP funds despite the lack of 
oversight and the record fiscal year 2009 budget 
deficit estimated at $1.2 trillion. 
(3) The Board of Governors of the Federal Re-
serve System has committed more than a trillion 
dollars to stabilize the economy by bailing out var-
ious banks deemed ‘‘too big to fail’’. 
(4) The $700 billion TARP fund and the new 
Federal Reserve lending facilities were created to 
protect Wall Street investors; therefore, the same 
Wall Street investors should pay for this infusion of 
taxpayer money. 
(5) The easiest method to raise the money from 
Wall Street is a securities transfer tax, a tax that 
has a negligible impact on the average investor. 
(6) This transfer tax would be on the sale and 
purchase of financial instruments such as stock, op-
tions, and futures. A quarter percent (0.25 percent) 
tax on financial transactions could raise approxi-
mately $150 billion a year. 
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(7) 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 
overcome the budgetary challenges during the Great 
Depression. 
(8) All revenue generated by this transfer tax 
should be deposited in the general fund of the Treas-
ury of the United States, scaled to meet the net cost 
of these bailouts, and phase out when the cost of the 
bailouts are repaid. 
SEC. 3. RECOUPMENT OF DEFICIT ARISING FROM FEDERAL 
BAILOUT. 
(a) IN GENERAL.—Chapter 36 of the Internal Rev-
enue Code of 1986 is amended by inserting after sub-
chapter 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.—There is hereby imposed 
a tax on each covered securities transaction an amount 
equal to the applicable percentage of the value of the secu-
rity involved in such transaction. 
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‘‘(b) BY WHOM PAID.—The tax imposed by this sec-
tion shall be paid by the trading facility on which the 
transaction occurs. 
‘‘(c) APPLICABLE PERCENTAGE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘applicable per-
centage’ means the lesser of— 
‘‘(A) the specified percentage, or 
‘‘(B) 0.25 percent. 
‘‘(2) SPECIFIED PERCENTAGE.— 
‘‘(A) IN
GENERAL.—The term ‘specified 
percentage’ means, with respect to any taxable 
year beginning in a calendar year, the percent-
age that the Secretary estimates would result in 
the aggregate revenue to the Treasury under 
this section for such taxable year and all prior 
taxable years to equal the Secretary’s estimate 
of the net cost (if any) to the Federal Govern-
ment of— 
‘‘(i) carrying out the Troubled Asset 
Relief Program established under title 1 of 
the Emergency Economic Stabilization Act 
of 2008, and 
‘‘(ii) the exercise of authority by the 
Board of Governors of the Federal Reserve 
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System under the third undesignated para-
graph of section 13 of the Federal Reserve 
Act (12 U.S.C. 343). 
‘‘(B) DETERMINATION OF PERCENTAGE.— 
Such percentage shall be determined by the 
Secretary not later than 30 days after the date 
of the enactment of this section, and redeter-
mined for taxable years beginning in each cal-
endar year thereafter. Such percentage shall 
take into account the Secretary’s most recent 
estimation of such net cost. Any specified per-
centage determined under this paragraph which 
is not a multiple of 1/100th of a percentage 
point shall be rounded to the nearest 1/100th of 
a percentage point. 
‘‘(d) COVERED
SECURITIES
TRANSACTION.—The 
term ‘covered securities transaction’ means— 
‘‘(1) any transaction to which subsection (b), 
(c), or (d) of section 31 of the Securities Exchange 
Act of 1934 applies, and 
‘‘(2) any transaction subject to the exclusive ju-
risdiction of the Commodity Futures Trading Com-
mission. 
‘‘(e) ADMINISTRATION.—The Secretary shall carry 
out this section in consultation with the Securities and Ex-
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change Commission and the Commodity Futures Trading 
Commission.’’. 
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 36 of such Code is amended by in-
serting after the item relating to subchapter B the fol-
lowing new item: 
‘‘SUBCHAPTER C. TAX ON SECURITIES TRANSACTIONS’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales occurring more than 30 
days after the date of the enactment of this Act. 
Æ 
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