Capitol Fax.com - Your Illinois News Radar » Transaction tax not going anywhere
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Transaction tax not going anywhere

Wednesday, May 7, 2014

* As we’ve already discussed, Chicago Teachers Union President Karen Lewis wants a tax on financial transactions to help fund the woefully underfunded city teachers pension fund

William Barclay, an economist advising the CTU, estimates a $1-to-$2 tax levied on the sellers and buyers of futures, futures options and securities option contracts traded on the Chicago Mercantile Exchange and the Chicago Board Options Exchange could raise up to $12 billion a year for the state, some of which could be used for pensions.

* But the governor dumped cold water on the idea yesterday

A financial transaction tax faces several legal hurdles, including a change in state law, a City Hall official said. And Gov. Pat Quinn also was skeptical.

“I just don’t think there’s the votes for that,” Quinn said Tuesday in Springfield. “I think that would be very difficult to do.”

* And CME’s spokesperson Laurie Bischel was completely opposed

“However, we do not believe the way to accomplish a strong public school system is through singling out futures traders with a tax more than 200 percent higher than what the average trader pays to buy or sell a futures contract,” Bischel said. “Futures traders do not have to do their business in Chicago today and this tax would make sure that they don’t do business in our city going forward.”

Discuss.

- Posted by Rich Miller        

23 Comments
  1. - Anonymous - Wednesday, May 7, 14 @ 10:11 am:

    ==Futures traders do not have to do their business in Chicago today and this tax would make sure that they don’t do business in our city going forward.”==

    This. They’ve come close to picking up and leaving before, I don’t see how this would not push them over the edge to leave.


  2. - wordslinger - Wednesday, May 7, 14 @ 10:14 am:

    Never going to happen.

    In the deepest point of the recession, CME was able to roll the GA for a huge tax cut, while individuals got an increase.

    They can swat away a transaction tax like a bug.


  3. - RNUG - Wednesday, May 7, 14 @ 10:19 am:

    Saw this reading my morning news shorts and wasn’t surprised it had popped back up.

    Laurie Bischel / CME makes a valid point. They can’t move in a day but building out a new infrastructure somewhere else could be done in less than a year. All the big traders would follow CME because distance = delay when it comes to trading and tenths of a second count. It would likely end up a major revenue loss for Chicago / Cook should all that spending, office, housing, etc. move elsewhere.


  4. - Lobo Y Olla - Wednesday, May 7, 14 @ 10:20 am:

    Why a 1$ or 2$ tax? Why not .10c? 1.2 billion is still a haul. CME would never leave. Never. I remember ADM making the same threat.


  5. - Dan Johnson - Wednesday, May 7, 14 @ 10:22 am:

    I don’t understand why I pay a sales tax when I buy a book but I don’t pay a sales tax when I buy a financial product (like stock or an option).


  6. - Grandson of Man - Wednesday, May 7, 14 @ 10:25 am:

    “contracts traded on the Chicago Mercantile Exchange and the Chicago Board Options Exchange could raise up to $12 billion a year for the state, some of which could be used for pensions.”

    Until our philosophy changes, we won’t be able to get such revenue to help take pressure off of budget cuts. I don’t see this change happening any time soon, so we must work with what we have and keep pushing for change if we want.

    I read something not too long ago about how European countries are or were supporting a financial transaction tax (a few countries oppose it). I read that the proposed tax would not be going to help social services, but to shore up banks from future collapses.


  7. - vttk17a1 - Wednesday, May 7, 14 @ 10:30 am:

    “Traders would relocate” is given by CME as a reason not to tax these financial transactions.

    The actual probability of traders moving because of a transaction tax is low. It is just another “I’ll take my ball and go home!” response to the tax. (Just like everyone is leaving Illinois because of X or Y or Z…)

    The opportunity costs of moving to a new location far exceed the costs of the proposed tax.

    The real truth is that CME is so connected that no politician can oppose them without destroying their own political future. This “threat” is mentioned to provide cover for elected officials to oppose the tax. The free ride continues…


  8. - Walker - Wednesday, May 7, 14 @ 10:30 am:

    Given the massive infrastructure needs, they couldn’t just move anywhere, but there are probably five or six realistic alternatives for them, where they would also keep highly-skilled staff.

    I wonder about Karen Lewis, often.


  9. - VanillaMan - Wednesday, May 7, 14 @ 10:30 am:

    It is a challenge to explain why something not directly related to education or to pensions, should be taxed to help either.

    “Do it for the kids!” - I get that.
    “Do it for our teachers!” - I get that.
    “Do it for our schools!” - Um, OK.
    “Do it for our teacher’s pensions!” - Um, what?


  10. - wordslinger - Wednesday, May 7, 14 @ 10:35 am:

    “Traders would relocate”

    Traders are already all over the world as it is. The exchanges are a ghost town compared to even five years ago, and they continue to shed support jobs as communications improve.

    As Walker points out, CME needs a communications infrastructure that is available in only a few places in the country, or the world for that matter.

    Still, the threat of a move is enough.


  11. - Peter - Wednesday, May 7, 14 @ 10:37 am:

    The battle of the heavyweights: Karen Lewis vs CME?

    I’ll take CME, thank you very much.


  12. - Ghost - Wednesday, May 7, 14 @ 10:56 am:

    The state does not really need new taxes to raise revenue.

    We need to enforce exisiting tax laws, fines and penalties. hire more enforcement personnel for agencies that have fines and penalties, and more auditors for the Dept of Revenue.

    This is one of the frustarting sides of government. Buisness complains that they do not like being audited, and that paying the exisiting sales tax and other taxes is driving them out of buisness. in approp hearings the general assembly yells at the Dept of Revenue for enforcing tax laws against business, and threatens to reduce their funding.

    So we want to bring in money, but our general assembly doesnt want anyone to actually pay it.

    This is simple. Double the States auditors and lets go collect the money we are actually owed and never paid. No new taxes just support enforcing what already exists! we need to stop adding new taxes and fees when we dont collect most of what is already out there and owed!

    Put more environmental inspectors, bank regulators, state police fining speeders etc etc.

    We are in a bizarre self inflcited loop. We defund the collection and enforcement of exisiting fees, taxes and fines… then pass new fees and fines to makeup for the loss of what we arent collecting but are already owed…. and then cut the enfrocement programs even more reducing staff further and adding even more fines and fees to make up for it. Legitmate business then gets hammered for our failure to go after those that arent complying.

    Enforce what we have and staff up the enforcement agencies.


  13. - Downstate Illinois - Wednesday, May 7, 14 @ 11:11 am:

    Nothing like these issues to help identify the neo-Marxists out there who fail to see the simple truth that business doesn’t have to stay here in Illinois, particularly an industry that will likely go all digital in the near future.

    Somebody might complain about the Marxist jibe, but really, this issue was proposed during the last election by Rich Whitney, the Green Party candidate for governor.

    Rich is a nice guy and a good attorney, but he’s a left-wing loon when it comes to the economy. Karen Lewis, who has never seemed to be a nice guy or gal, often stands to the left of him.


  14. - wordslinger - Wednesday, May 7, 14 @ 11:17 am:

    –Nothing like these issues to help identify the neo-Marxists –

    Or comments like that to identify the contemporary crazies.

    Yeah, financial exchange transaction taxes — just like Stalin and Mao used to make. (Psst, they didn’t have financial exchanges; they were commies).

    The nostalgia for the commies is deep in some. Personally, I don’t miss them.


  15. - Keyser Soze - Wednesday, May 7, 14 @ 11:21 am:

    Peter: Well put.


  16. - DuPage - Wednesday, May 7, 14 @ 11:30 am:

    @Ghost10:56=Put more…state police fining speeders=

    The purpose of the state police is not to produce revenue.


  17. - ejhickey - Wednesday, May 7, 14 @ 2:00 pm:

    The CME and CBOE is not the only exchange in the world. Traders have their choices of exchanges. If Lewis is serious about raising more money for CPS she should propose something like a city income tax or extending the state income tax to retirement income.


  18. - Precinct Captain - Wednesday, May 7, 14 @ 2:33 pm:

    ==It is a challenge to explain why something not directly related to education or to pensions, should be taxed to help either.==

    What would we tax to fund education that is directly related to it? For that matter, would we pay for police by a user fee tax on criminals? LOL.


  19. - Fisherman - Wednesday, May 7, 14 @ 3:21 pm:

    Anyone who thinks the exchanges won’t move is sadly deluded. For $12 billion they would move as fast as they could. There are many states who realize the value of our exchanges and are always making very generous offers to lure them.


  20. - wordslinger - Wednesday, May 7, 14 @ 3:26 pm:

    –For $12 billion they would move as fast as they could.–

    Me, too.

    Where do you get $12 billion?


  21. - Fisherman - Wednesday, May 7, 14 @ 3:33 pm:

    “William Barclay, an economist advising the CTU, estimates a $1-to-$2 tax levied on the sellers and buyers of futures, futures options and securities option contracts traded on the Chicago Mercantile Exchange and the Chicago Board Options Exchange could raise up to $12 billion a year for the state, some of which could be used for pensions.”


  22. - wordslinger - Wednesday, May 7, 14 @ 3:40 pm:

    Fisherman, sorry, I misread the original post. I though it said $1.2 billion. Mea culpa.

    Obviously, it’s not a serious proposal if you’re going after $12 billion a year from those who trade at CME and CBOE.


  23. - Steve - Wednesday, May 7, 14 @ 4:28 pm:

    One wonders if so called economist William Barclay has ever heard of the substitution effect in economics?


Sorry, comments for this post are now closed.


* Reader comments closed for the weekend
* Brady makes some unusual appointments to discrimination and harassment task force
* Pritzker sues endorser, deletes ad she appeared in
* SUBSCRIBERS ONLY - Candidate announcement
* Best tweet of the day
* Question of the day
* Roskam race moved to "Toss Up" by Cook Political Report
* Kennedy lashes out at Emanuel, while Pritzker takes a softer approach
* Rauner refuses to weigh in on federal tax legislation
* Reports: Former Munger firm gets $12.5 million no-bid contract after a $12 million payment was frozen by Mendoza
* "Every time I see a little kid waving I always try to wave back"
* Londrigan, EMILY's List stand by their false statements
* In praise of Mary Ann Ahern
* George Will: Illinois "approaching a death spiral"
* Rauner urged to sign education funding "cleanup" bill
* Republican Party wants Durbin, Duckworth to give away Franken's cash
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Open thread
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............
<


Loading


* In Illinois, battle over bankrupting 'blue mode.....
* Opinion/Column: Battle looms over ruinous polit.....
* GEORGE WILL: In Illinois, a looming battle over.....
* George Will: In Illinois, a looming battle over.....
* George Will: In Illinois, a looming battle over.....
* George Will: In Illinois, a looming battle over.....


* Backers hope Route 66 historic designation can drive tourism
* EXCHANGE: UI lab has watched children grow for 75 years
* EXCHANGE: Hit by train, Highland teen has amazing recovery
* Chicago-area school chief who is to resign denies harassment
* Ex-Merrillville councilman admits guilt in bribery case
* Newspaper investigation finds Illinois raffle irregularities
* Newspaper investigation finds Illinois raffle irregularities
* $80M Mississippi River bridge opens from Illinois to Iowa
* $80M Mississippi River bridge opens from Illinois to Iowa
* New temporary US attorney named for central Illinois

* Electric cars, better fuel efficiency spell doom for Illinois gas tax
* Springfield wants out of legislation limiting payments for 5G antennas
* Fact check: Are Gov. Rauner's grandparents immigrants?
* Londrigan accused of attacking Davis for 'opposite' of remarks
* Gov. Rauner signs sex harassment legislation
* Under the Dome Podcast: Governor's race, sexual harassment, Rodney Davis
* Macoupin Co. highway renamed in honor of soldier who died in Vietnam
* Macoupin Co. highway renamed in honor of solder who died in Vietnam
* Schoenburg: Rep. Davis leads new caucus, pleased with White House access
* Rep. Davis leads new caucus, pleased with White House access

* Like our roundup? Share it around.
* Here's how Baker McKenzie profits from offshore tax system
* Cards Against Humanity works to maintain its naughtiness
* The either/or world of Cards Against Humanity: Funny or Die
* Why do people give? Not for the tax break.


* Police: 68-year-old man killed in hit-and-run crash in Logan Square
* Dear Abby: He can’t drive, but his grown children won’t visit, help
* Sheriff: Man battered firefighters trying to extinguish his car fire
* Woman, 24, wounded in drive-by shooting on South Side
* Georgia Nicols horoscopes for Nov. 19, 2017
* Spokeswoman: David Cassidy in hospital with organ failure
* ‘SNL’ host Chance the Rapper creates a new Thanksgiving anthem
* 4 wounded in Chicago weekend shootings
* MAP: Chicago weekend shootings tracker for Nov. 17 – 20
* Man charged with stabbing off-duty CPD officer in ‘domestic incident’


* Sandhill cranes bounce back from brink as migration over Illinois to peak next week
* Receptive Ryan: Scianna's TD catch lifts Lincoln-Way East into state finals
* Maine South proud, upbeat about future after loss in state semis
* 3 wounded in shootings on South, West sides
* Mar-a-Lago's new winter season: The Red Cross Ball is out, and 'Trumpettes USA' are in
* Zimbabweans say Mugabe must quit now, but more talks planned
* Argentina says it may have received signals from missing sub carrying 44 crew members
* LaToya Cantrell will become first woman mayor in New Orleans' history
* From scout team to leading rusher: Rhys Logan helps Loyola reach 8A final
* Lena Dunham under fire after defending 'Girls' writer accused of sexual assault


» State Week: Are Voters Thinking About 2018?
» Legislative Checklist: Veto Session
» How 3 Women Want To Make Illinois’ Political Future Female
» Illinois Supreme Court Weighing Seizure Of Woman’s Harley
» Illinois Supreme Court Weighing Seizure Of Woman's Harley
» Statehouse Ethical Issues Might Need Outside Oversight, Legislators Say
» Prosecutor: No More Indictments In Laquan McDonald Shooting
» Metra Board OKs Budget With Service Cuts, Fare Hikes In 2018
» For Illinois Sex Offenders, Six Years Can Turn Into Life In Prison
» State Week: Harassment Training, Veto Wins And Losses, Late Payments


* Bernard Schoenburg: Ives says Rauner joined 'ruling class' he was to fight
* Statehouse Insider: Republican primary for governor underway
* Doubek: For harassment and beyond, Springfield needs stronger accountability
* Jim Dixon: It is time for a fair tax for Illinois
* Our View: It’s time for decision on YWCA block
* Electric cars, better fuel efficiency spell doom for Illinois gas tax
* Ed Rogers: A Clinton special counsel won't help Republicans in 2018
* Guest View: Rural health care providers deserve our thanks
* Springfield wants out of legislation limiting payments for 5G antennas
* Fact check: Are Gov. Rauner's grandparents immigrants?


* Anselm: Quad-City Times prepares largest edition of the year - 100s of pages of deals, coupons
* UPDATED: waterway advisories remain for northern counties
* Michelle N. Rollins
* Max Owens
* Jody Spaniol
* Holiday obituary hours
* Merton Edward Thayer Jr.
* Nick D. Bartlow
* Billy Dean Gibbs
* Robert D. Bell


* Missouri wins fifth straight to become bowl eligible
* Mavericks stop 4-game slide with win against Bucks
* Herbert returns, Oregon beats Arizona 48-28
* Boys bowling: Scouting Lake County
* Officials: McHenry County jail inmate's death under investigation

* DOJ to ban US lawmakers should Duterte ord...
* Hultgren whishes McHenry County College a ...
* Hultgren and Ruppersberger: Protect infras...
* Shaun Alexander: I'm amazed by the authori...
* Hultgren, Roskam help deliver tax bill for...
* This RSS feed URL is deprecated
* Rep. Randy Hultgren congratulates McHenry ...
* 3 suburban GOP reps provide crucial votes ...
* US lawmakers to Duterte: 'Sovereignty does...
* Panel encourages women to consider careers...

* This RSS feed URL is deprecated...

* This RSS feed URL is deprecated...

* Meet Your 20th District Officers On Argyle in Sunday/Monday Events
* Randi Weingarten’s secret meeting with Steve Bannon.
* Believe women.
* SNL Watch Party at SMG-Chatham
* The Weekend Desk Report
* The Weekend In Chicago Rock
* The Week In Chicago Rock
* Sunday week in review.
* Keeping retirement weird. Our Miss Brooks.
* SportsMonday: Peak Bears


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* Google Pixel 2 bootloader issues, iPhone X fixes & more – Pocketnow Daily
* [Sponsored] Take advantage of Tomtop’s electric treadmill flash sale!
* NFL may expand match livestreaming away from Verizon phones
* Razer Hammerhead USB-C earbuds designed to compliment Razer Phone
* Honor V10 specs reportedly include headphone jack, slightly smaller battery
* The Razer Phone is now available at select Microsoft Stores
* HomePod unceremoniously delayed until early 2018

* Sporcle Saturday: Top player performances
* LIVE: MLB Awards unveiled on Network
* White Sox face roster call on Clarkin, 6 more
* Thyago Vieira brings missing heat to White Sox bullpen battle
* MLB Awards grand finale (7 CT, MLB Network)
* White Sox trade for hard-throwing Vieira
* White Sox acquire prospect Vieira from M's


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller