What is a Securities Transation Tax (STT)?
A securitites transation tax (also known as a Financial Transaction Tax, under a broader umbrella) levies a tax on financial market trades of stocks, bonds, derivatives, and similiar financial transations. A STT is not a taxing of the financial institutions themselves. Instead, it is charged only on the specific transactions that are designated as taxable. We could start to rebuild the city budget with a one cent/share STT tax in Chicago.
The City Council should be considering a STT tax before any other tax that will further burden the average Chicago taxpayer. This tax won't hurt the average citizen, we can only benefit from it.
STT has been fully implemented in 15 other countries and has had a positive financial impact for those countries that include England.
Billions of shares are traded in Chicago, daily. The amount of the tax would probably be somewhere around one cent/share ~ this could possibly generate $200 million + more for the city budget.
The positives:
- The average Chicago citizen won't have to pay it, but will benefit.
- The tax reduces speculation and makes the banking system safer (less volatile).
- Its a tiny tax that accrues a huge amount of revenue.
- Some people will argue that traders will go elsewhere to trade, move to another city, etc. To that, it is said, go, because traders don't contribute to the tax base and are parasites to municipalities, receiving tax breaks & free city services. They don't contribute one penny to the city budget, but cost us plenty.
The STT tax has been monikered the "Robin Hood" tax because it takes from the rich, to benefit the poor. Lets analyze this last statement juxtaposed with city politics... The mayor will most likely have issues with a tax like this because he will receive major pressure from his political sponsors, whom have made millions, even billions in commodities and trade ( and the mayor himself through "Investment Banking").
Our mayor seems quite comfortable implementing tax increases for us: property tax increases, a new city tax increase, etc... Lets see if he will tax his pals.
What do you think?
I saw PT last night and heard your question to Alderman Waguespack. Interesting concept and from what the alderman said, worth looking into. What I automatically thought was how long will it take the state to piggy back on the STT?
ReplyDeleteAn STT is long overdue. The Chamber/Civic Federation types will have fitts at the very mention of this tax. It hits them where they live. They see us as serfs, who are duty-bound to pay all taxes. No doubt they will dispatch Rahm to crush any STT proposal.
ReplyDeleteWe need an Alderman with guts to propose an STT on the floor at City Hall. One Alderman, maybe the only Alderman, who apprears to not fear Rahm is Scott Wagauspack. In a lengthy CLTV interview last evening he described several run-ins he's already had with Rahm. He has also spoken out against Daley's freeloading of Police resources.
Wagauspack answered positivly when asked about the STT tax. He's smart enough to know many corporate dollars will go to fund his opponent in the next election just for mentioning STT. He's got the guts. The question is, does anyone else have the guts?
Just heard Ch. 9 report the Merc is threatening to move to Indiana. Good. I hope they move tommorow. Take your corporate welfare asses to the land of missing teeth.
ReplyDeleteY'all don't come back now, ya hear.
If the Wall Street protesters were more organized, they would make STT their mantra
ReplyDeleteThis is a good idea. I hope someone takes a serious look at it
ReplyDeleteThe one percent at the merc need to start paying their fair share - which would be anything but nothing.
ReplyDeleteThis makes to much sense
ReplyDeleteImposing taxes on businesses that form the industry basis for Chicago is ruining the city and Illinois! The Merc alone provides over 100,000 jobs.
ReplyDeleteWhy are you wanting to chase away big business? When they leave so does your job!! Other states are giving big tax breaks to corporations and cutting down on wasteful spending. Illinois and Chicago need to stop wasting money.
Nice try 8:10. At the most 2000 people work at the Merc. Most of the "work" at the Merc is now done electronicly. And the 2000 Merc employees not only didn't give a damn when 50,000 factories and 5 million American workers were outsourced since 2000 - they cheered.
ReplyDeleteThe Merc produces nothing. They are nothing more than a middle-man skim operation. What they do has a corrosive effect on society. The Merc needs pay back the 15 million TIF dollars Daley gave them, as well as pay their damn taxes, or get the f!@# out of town.