1. Short title This Act may be cited as the Putting Main Street FIRST Act or as the Putting Main Street FIRST: Finishing Irresponsible Reckless Speculative Trading Act . 2. Transaction tax (a) In general Chapter 36 of the Internal Revenue Code of 1986 is amended by inserting after subchapter B the following new subchapter: C Tax on Trading Transactions Sec. 4475. Tax on trading transactions. 4475. Tax on trading transactions (a) Imposition of tax There is hereby imposed a tax on each covered transaction with respect to any security. (b) Rate of tax The tax imposed under subsection (a) with respect to any covered transaction shall be 0.03 percent of the specified base amount with respect to such covered transaction. (c) Specified base amount For purposes of this section, the term specified base amount means— (1) except as provided in paragraph (2), the fair market value of a security (determined as of the time of the covered transaction), and (2) in the case of any payment with respect to a derivative, the amount of such payment. (d) Covered transaction For purposes of this section— (1) In general The term covered transaction means— (A) except as provided in subparagraph (B), any purchase if— (i) such purchase occurs on, or is subject to the rules of, a qualified board or exchange located in the United States, or (ii) the purchaser or seller is a United States person, and (B) any transaction with respect to a derivative if— (i) such derivative is traded on, or is subject to the rules of, a qualified board or exchange located in the United States, or (ii) any party with rights under such derivative is a United States person. (2) Exceptions from tax (A) Exception for initial issues No tax shall be imposed under subsection (a) on any covered transaction with respect to the initial issuance of any security described in subparagraph (A), (B), or (C) of subsection (e)(1). (B) Exception for certain traded short-term indebtedness A note, bond, debenture, or other evidence of indebtedness which— (i) is traded on, or is