Hoyle, Schatz, Smith Introduce New Legislation to Reduce Economic Inequality and Make Wall Street Pay Its Fair Share
The Wall Street Tax Act aims to disincentivize dangerous, risky investments that threaten the stability of the U.S. economy
For Immediate Release: June 18, 2025
EUGENE, OR – Today, U.S. Representative Val Hoyle (OR-04), U.S. Senator Brian Schatz (D-Hawaii), and Rep. Adam Smith (WA-09) introducedThe Wall Street Tax Act (H.R. 4035), which would deliver hundreds of billions of dollars back to the American people by making Wall Street pay its fair share. The bill would create a progressive tax aimed at reducing the risky trading practices that threaten our economic stability while generating revenues that can be reinvested towards services for working people. Once fully implemented, the bill is projected to raise $750 billion over 10 years.
“While Republicans push another tax break for billionaires that would blow up the deficit, we’re offering a smarter path. The Wall Street Tax Act puts a price on the risky, high-speed trading that benefits Wall Street and leaves working families behind,” said Rep. Hoyle. “This small, targeted tax will raise hundreds of billions from those who can afford it and reinvest it in things that actually help people—like schools, housing, and infrastructure. Working families shouldn’t have to pay for Wall Street’s gambling.”
“Wall Street routinely cashes in on high-risk trades that add no real value to our economy. It’s long past time we curbed this dangerous trading to reduce market volatility and encourage investment that actually helps our economy grow,” said Senator Schatz. “Republicans are racing to enrich billionaires and corporations by ripping regular people off. We’re doing the opposite: raising new revenue from Wall Street to reinvest in our communities.”
“It's past time for the wealthiest to pay their fair share, which is why I'm proud to support the Wall Street Tax Act, which targets high-risk trades that create high volatility and instability in the markets," said Rep. Smith. "I’ll continue to fight for a fairer economy that works for everyone and reflects the values of the communities I serve."
“Instead of the proposed heartless cuts to services that help vulnerable communities and everyday people—like Medicaid and nutrition assistance—that Congress is currently debating, there is another route that lawmakers can and must pursue: raising taxes on corporations and the super-rich—including Wall Street high rollers,” said Susan Harley, managing director of Public Citizen’s Congress Watch division. “The Wall Street Tax Act would generate hundreds of billions of dollars that could be used to expand programs that improve the lives of Americans and it has the simultaneous benefit of reducing harmful high-speed trading that hurts investors and increases risk in our markets.”
This bill is cosponsored by U.S. Representatives Frost (D-FL), Jayapal (D-CA), McGovern (D-MA), Pingree (D-MN), Schakowsky (D-IL), Tlaib (D-MI), Watson Coleman (D-NJ) and by U.S. Senators Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.), Sheldon Whitehouse (D-R.I.), John Fetterman (D-Pa.), and Jeff Merkley (D-Ore.).
The Wall Street Tax Act is currently endorsed by 32 organizations, including:Affordable Homeownership Foundation, AFL-CIO, American Family Voices, American Federation of Teachers, Americans for Financial Reform, Americans for Tax Fairness (ATF), Blue Future, Chicago Political Economy Group, Child Labor Coalition, Citizens for Tax Justice, Coalition on Human Needs, Communications Workers of America (CWA), Consumer Action, Food & Water Watch, Greenpeace USA. Groundwork Collaborative, Institute for Policy Studies, Global Economy Project, Institute on Taxation and Economic Policy Medical Mission Sisters(Unit North America), National Consumers League, NETWORK Lobby for Catholic Social Justice, Our Revolution, Oxfam America, Public Citizen, Public Justice Center, Responsible Wealth, RootsAction, Take on Wall Street, Unitarian Universalists for Social Justice, United for a Fair Economy, United Church of Christ, and United Steelworkers International Union (USW).
The Bill
The Wall Street Tax Act will levy a 0.1% tax – phased in over five years–on the sale of stocks, bonds, and derivatives to discourage risky and unproductive trading practices and gives those profits back to the people. The tax would apply to the fair market value of assets. Initial public offerings (IPOs) and short-term debt would be exempted from the tax.
Background
High frequency trading (HFT) is a type of asset trading that uses supercomputers and specialized algorithms to make large, high-volume trades in a fraction of a second. HFT allows corporations and the ultra-wealthy to benefit from minor fluctuations in stock prices by allowing them to buy and sell in large volumes to make larger profits off of small differences. These practices create undue market volatility, which overwhelmingly hurts everyday investors who are unable to trade as quickly.
In addition, these speculative, high-volume trading practices add little to no real value to the U.S. economy because the gains from them are centralized within the hands of a wealthy few. However, these high stakes games do have a real impact, as their asset prices react to the trades. The volatility these trades causecan even lead to a “Flash Crash,” where such volatility prompts mass selloffs across the stock market. This volatility can affect the retirements, pensions, and investments of working people.
The Wall Street Tax Act is considered a progressive tax, meaning lower income earners pay a lesser percentage of their income in taxes compared to those with higher incomes.
The full text of the bill can be found here.
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