Following a June 7th presentation to the Illinois legislature by CPEG members Ron Baiman and Bill Barclay, which occured during a hearing on proposed bills to create a “LaSalle Street Tax”, CPEG has issued additional clarifying comments. The comments are in response to a number of issues raised during the hearing.
Tag Archive for Deficits
On June 7th, CPEG members Ron Baiman and Bill Barclay testified before the Illinois House of Representatives on House Bill 106, Introduced by Rep. Mary Flowers of Chicago, which would create a “LaSalle Street”, or Financial Transactions Tax in the state.
Baiman testified that a LaSalle Street Tax would be fair, feasible, and beneficial, adding billions in revenue to the ailing state budget. Barclay testified that talking points from opponents of such a tax are not grounded in real experiences. Download the powerpoint presentations that accompanied their testimony:
Ron Baiman’s Testimony (.pptx)
Bill Barclay’s Testimony (.pptx)
At a July 19th Community Forum entitled The Illinois Budget Crisis, Workers’ Rights and Revenue, CPEG’s Ron Baiman gave a presentation on how a LaSalle Street Tax (also known as a Financial Transaction Tax), could save the Chicago and Illinois budgets and clean up exchanges such as the Chicago Mercantile.
In addition to the potential for billions in revenue for ailing budgets, Baiman noted that, in direct contradiction to frequent fears cited by opponents of the tax, “There are Financial Transactions Taxes on various financial markets in the United Kingdom, Switzerland, Hong Kong, Brazil, France, Singapore and other countries; in most cases the tax is at a higher rate than proposed under [current legislation]. These are all large markets that have not been hurt by the tax and exchanges have not moved away.”
Download the full presentation (.pptx)
Every Month a CPEG member will be posting a brief issue analysis for discussion and comments. This month’s discussion piece was authored by CPEG member Ron Baiman, with additional commentary from CPEG member Mel Rothenberg. More information about both can be found in the “About Us” section of our site.
One of our premier cities, sitting at the center of the industrial heartland, once a symbol of democracy, upward mobility, racial integration, a growing and vibrant middle class, and opportunity and a better life for immigrants from all over the world, has gone bankrupt. The cause has been obvious for at least three decades: massive de-industrialization, free-trade, union busting, white flight and suburban sprawl, deregulation, and “Financialization.” Similarly, for the same reasons, the Illinois economy, the largest and most important in the Midwest, has been in a downward spiral for decades.
Beowulf’s Brilliant Idea: Take Away the Fed’s and Private Finance’s Exclusive Right to Create Public Money
Written by CPEG’s Ron Baiman
Though Congressional Republicans have apparently backed off of their plan to immediately take the federal government hostage by temporarily extending the federal debt limit, the threat remains.
As many of you probably have heard by now a blogger with the screen name of Beowulf has come up with a unique and apparently perfectly legal method for the Treasury to do an end-run around (questionably legal) Congressional debt limit extortionism.1 Beowulf proposes to take advantage of a 1995 act that apparently gives the U.S. Mint the ability to assign any value to platinum coins that it mints and transfer these coins, or more to the point, their value, to a U.S. Treasury account at the Federal Reserve. The Treasury could then use these funds to pay its bills. Readers will recognize that this is effectively a form of “coin seigniorage,” that is a creation of money by fiat using platinum coins.2 Beowulf proposes that the Treasury mint a few platinum coins and value them at $ 1 trillion dollars each.3