Chicago's Proposed Tax on Derivatives Firms Sparks Fear of Exodus
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Chicago's derivatives industry handles trillions in trades annually, but faces $800M in new taxes under the city's mayor. Firms are alarmed and considering leaving.
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Derivatives firms like CME, Cboe, and DRW have long called Chicago home, providing thousands of jobs. They are working together to make their case against the tax.
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The mayor is staring down a $538M budget deficit and views the profitable derivatives industry as a way to raise revenue. The firms argue the tax would disadvantage them.
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The city wants to avoid an exodus like New York and California have seen. But crime is surging, concerning firms like Citadel that have already left.
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The proposed securities transactions tax could boost trading costs by 800% for firms like CME. But the mayor says he's open to dialogue before final decisions.