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 Financial Transaction Tax
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)
In an October 1st address to the UIC chapter of the State Universities Annuitants Association (SUAA), CPEG’s Bill Barclay explained the potential benefits of a small LaSalle Street Tax (also known as a Financial Transactions Tax), on Chicago’s two large trading markets. Barclay suggested that some of the estimated $10-12 Billion in revenues that could be generated by the tax could be used to make up for the decades-long failure of the Illinois legislature to keep their pension funding promises.
The SUAA, with over 1,600 members, exists to promote the individual and collective interests and welfare of its members and of all UIC retirees. You can download Barclay’s presentation here (powerpoint), or view the full presentation on Youtube.
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)
Chicago already has one of the biggest “rich person” casinos in the world but it is hardly taxed at all. A new CPEG report explores the massive gap between taxation of largely lower and middle-class riverboat gamblers, and the upper-class who do their gambling in the heart of Chicago’s financial district.
In fact, assuming that both rich and poor person casinos in Illinois pass tax costs on to their customers, “traders” at Illinois’ rich-person casinos: Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT) owned by the CME, and the Chicago Board of Options Exchange (CBOE) pay state taxes that are at most equal to 0.000014% of the nominal value traded, more than 200,000 times lower than the 3.2% state tax per dollar wagered by “gamblers” at Illinois’ 10 poor-person riverboat casinos.