Paul Buchheit | September 19 2016 | Common Dreams
The rallies in Chicago and around the country evoke passion and sympathy from most of us, but just a shrug of the shoulders from those ultimately responsible for the carnage on our streets. These are the leaders of finance who use our infrastructure, technology, security, law, location, and especially our people to make billions in profits while paying almost nothing in return.
Especially the securities traders. An impoverished mother pays up to 10% in sales tax when she buys shoes for her kids, but the customers of companies with a quadrillion dollars in sales pay ZERO SALES TAX. Quadrillion sounds like gazillion, but it’s a real number — a thousand trillion, about four times the value of all the world’s wealth.
The protesting mothers are angry at the people who are killing their children. Much of that anger should be directed at the financial districts of New York and Chicago.
The Shame of Chicago
With a quadrillion dollars in sales and the collection of transfer fees, contract fees, brokerage fees, Globex fees, clearing fees, and surcharges, the Chicago Mercantile Exchange achieved a profit margin (54%) higher than any of the top 100 companies in the nation from 2008 to 2010, and in recent years it’s risen to nearly 60%.
Despite being the most profitable big firm, CME complained that its taxes were too high, and they demanded and received an $85 million tax break from the State of Illinois.
The Farce in New York
The good news is that New York has a financial transaction tax. The bad news is that as soon as the tax is paid, it’s given back. That can only happen in the “strange world of taxes,” according to the New York Times, which also admits that the financial transaction tax “is an idea whose time has finally come.”