This bill would impose a tax on trading securities — particularly stocks, bonds, and derivatives. This tax is commonly referred to as a ‘Robin Hood Tax’ on Wall Street. The tax is designed to reduce risky transactions in financial markets and high-frequency trading.
Stock trades would be taxed at 0.5 percent, bond trades would be taxed at 0.1 percent rate, and derivative trades would be taxed at 0.005 percent. So for example, a stock trade of $1000 would be be subject to a $5 tax, and a derivatives trade of the same amount would have a five cent tax imposed on it.
There would be several exceptions to the transaction tax, including:
Initial issuances of securities;
Short-term debt securities — like notes, bonds, or debentures — that have a fixed maturity of 60 days or less.
This bill outlines penalties for failing to include covered transaction information on a tax return. The Commissioner could rescind the penalties in-part or in-full if those graces promote compliance with this law. Any determinations made by the Commissioner would not be subject to judicial review.