The president of a Chicago financial institution warns that a plan to taxi every transaction they make will raise prices for nearly everything Illinoisans purchase.
Chicago Mercantile Exchange President Terry Duffy said all Illinoisans would feel economic pressure if lawmakers impose a $1 or $2 tax hike on trades.
“Adding a $2 fee to the transactions tax would be like raising the cost of gasoline from $2 per gallon to $10 dollars per gallon overnight,” Duffy said. “Consumers would pay more for food, gas and other essential products that are essential to everyday life.”
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Daniel Silver, a Southern Illinois University law professor, said it’s wrong for financial traders to move their products without paying taxes on the transaction.
“It is grossly immoral and inequitable for those who are facing loss of employment, education, and vital human services to continue to pay a tax to Illinois on every single transaction we enter into, while the large banks, hedge fund operators and high-frequency traders do not,” Silver said.
Gov. Bruce Rauner said a transactions tax would be devastating to Illinois’ economy.
Duffy said other countries that have tried a financial transactions tax consistently fail to raise the promised levels of revenue. He said CME Group is the fifth-largest taxpaying entity in Illinois, paying nearly $50 million in corporate taxes annually. He adds that a financial transaction tax would be more than enough for he and his traders to relocate outside of Illinois.
House Bill 106 would exempt retirement accounts from the proposed fees.