A financial transactions tax on each stock, options, or commodities trade--has long been dream of leftists to fund their big government schemes.
But leftists never take into account--or take seriously--the expected pushback.
Exchanges, such as the Chicago Mercantile Exchange, can leave for friendlier cities.
From Bloomberg:
Other cities will welcome "the Merc" with open arms--and without a transaction tax.CME Group Inc. is prepared to leave Chicago if the city and state take steps that are perceived as “ill-conceived,” Chief Executive Officer Terry Duffy said in an interview.
Duffy’s remarks, made in an episode of the Odd Lots podcast, come as Mayor Brandon Johnson is being sworn into office after proposing additional taxes, including one on financial transactions, to help boost the city’s revenue. That plan was fiercely opposed by Chicago’s exchanges and investment firms. A higher levy would also require state approval to pass.
“Mr. Johnson has no legal authority to impose a transaction tax on my business,” said Duffy, adding that fighting crime should be a bigger focus for the new mayor. He also shouldn’t “get too bogged down on how he’s going to short-term think he’s going to raise taxes on certain people in order to fit his agenda.” Duffy’s remarks may add pressure on a new mayor who’s promised a slate of progressive reforms, as he contends with a recent exodus of financial firms from one of America’s best-known trading hubs. Citadel founder Ken Griffin last year announced he was ditching Chicago for the sunlit uplands of Miami, while other trading companies are grappling with empty office buildings.
Duffy also remarked that the CME Group no longer owns property in Chicago--for the rest of Illinois.
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