-- Connecting the dots between our economy, government and business --
By levying a $1 tax on any financial transaction completed in the state, supporters have said it would bring in estimated $6 billion annually, not accounting for any behavioral backlash. The Chicago Board of Trade, Chicago Mercantile Exchange, and the Chicago Board Options Exchange would all be targeted by the new tax.
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
And CME, CBOT and CBOE will immediately leave Illinois. Simple as that.
Democrat politicians are beyond stupid.
I actually hope that the transaction tax passes and all of the companies leave. At the current rate the financial implosion of IL is taking way to long. Anything that can speed it up is appreciated.
It’s crazy that the state would risk losing high paying and innovation jobs over this. These politicians don’t seem to understand the futures industry is a great profit center for the state to generates immense tax dollars even without a FTT.
There’s no law that states corn futures must be traded on an exchange physically located in Illinois. I gotta imagine the exchanges have a working plan to move any and all operations out of state.
I don’t know if all of the jobs will leave, just the infrastructure where the trade occurs. It probably would not affect to many jobs.
I think the fees to clear a trade on CME are $0.35 and they want a dollar tax on that. Would like to know who the idiot is that sponsored the bill.
The behavioral backlash will be all 3 of them relocating to Florida or Texas. The gentle river of money leaving the state will become a tsunami. I always think of Will Rogers, because the Democrats never met a tax increase they didn’t like.