Very few Chicagoans know
that while a low-income mother pays almost 10% in sales taxes for a pair of shoes
for her kids, a trader on LaSalle Street pays ZERO sales tax for a
million-dollar purchase of financial securities. The mainstream media doesn't
provide this information.
Mayor Emanuel believes a transaction tax will hurt the Chicago
exchanges. Here's another fact that people should know: The Chicago
Mercantile Exchange, with billions of untaxed contracts worth well over a quadrillion dollars a year, has a profit
margin higher than any of the top 100 companies in the nation. Yet
despite the company's privileged position, it demanded and received an $85
million per year tax break from Illinois.
Transaction taxes are prohibited by Illinois state law. Wealthy traders and
investors made that happen to protect their own interests. They made sure
that the burden of taxes would fall on average Chicagoans.