LaSalle St. Tax Q&A
Updated: Sep 12, 2019
Contrary to claims by financial lobbyists, neither the Traders who would pay it, or the Exchanges who would collect it, could avoid this minimal Illinois sales tax, or local financial transactions tax, by "flipping a switch". All of the evidence, including the millions of dollars spent on a legal battle over a cell tower next the Chicago Mercantile Exchange data center in Aurora, shows that any Exchange relocation would be enormously costly and disruptive. In addition traders have no where else to trade on the products that would be taxed and attempts to start-up new exchanges even with steep trading fee discounts and major financial backing have failed in the past due to the "collective action" problem. Since traders need other traders to trade with, unless a critical mass of traders move together, individual traders will not move.
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