County commissioners asked to support measure: Bill seen as solution to state budget crisis

<p class="p1">Union County officials have been asked to consider supporting proposed state legislation that a proponent says will offer a solution to Illinois' budget crisis.</p><p class="p1">Information about the proposed legislation has been shared with the Union County Board of Commissioners.</p><p class="p1">The information was presented by Daniel Silver of Alto Pass. Silver is an attorney and teaches paralegal studies at Southern Illinois University.</p><p class="p1">Silver read a prepared statement for those in attendance at a regular meeting of the Union County Board of Commissioners which was held Thursday morning, Feb. 11. The meeting was at the Union County Courthouse in Jonesboro.</p><p class="p1">Silver's statement opened with a question: "Have you finally had enough of Illinois' budget crisis so that you are motivated to act?</p><p class="p1">"There is a solution, but the solution requires unity and your willingness to act.</p><p class="p1">"Fear not. Individuals who join together on a single issue can instruct politicians by our sheer numbers to take specific actions."</p><p class="p1">Silver called for "fast-track" passage the LaSalle Street Tax, or Illinois House Bill 106, which supporters see as "the real solution to the state's revenue problem."</p><p class="p1">In his statement, Silver explained that: "Right now, the use tax in Illinois is right at 6.25 percent on most transactions you engage in. You pay at least 6.25 percent for general merchandise transactions in Illinois. There are exceptions. For example, the tax is only 1 percent in Illinois for qualifying food, drugs and medical appliances. Taxes in Illinois for wagering start at 15 percent.</p><p class="p1">"Nevertheless, those financially able to gamble at the Chicago Board Options Exchange and the Chicago Mercantile Exchange, while utilizing a wide variety of Illinois services, pay no tax on their daily transactions.</p><p class="p1">"Each year, the value of products traded on these two exchanges totals more than $800 trillion."</p><p class="p1">With those exchange numbers in mind, Silver said that Illinois Rep. Mary Flowers has proposed House Bill 106, "sometimes referred to as the 'LaSalle Street Tax'."</p><p class="p1">Silver said that HB 106, if approved, would "require buyers and sellers to pay only a single dollar contract fee on agricultural futures and futures options traded, and a $2/contract fee on all other trades. The low average contract size at these exchanges exceeds $225,000, so the tax amounts to less than 0.001 percent of average contract value.</p><p class="p1">He said that "given the volume of trading on these two exchanges, the tax would generate an estimated $10 billion to $12 billion in revenue annually, roughly one-third the value of our state's current operating budget. That would be enough to avoid the current projected cutbacks and start paying down the pension deficit."</p><p class="p1">"Most Illinois politicians are ignoring" the proposed legislation, Silver said, "while promoting instead an ever increasing financial burden placed squarely on the financially weak, on public employees, retirees, students, educators, the disabled and infirm, the homeless, and the rest of us who desire, or depend upon, a state government capable of serving its core functions. Even though a tiny tax on the Chicago exchanges will raise in excess of ten billion dollars a year hereafter, even though that tiny tax will eliminate Illinois' financial crisis and save thousands of livelihoods and lives, politicians and citizens have failed to act on making fast-track passage of House Bill 106 our single greatest imminent priority."</p><p class="p1">Silver called for action to support the proposed legislation. "We each must mail letters to our state representatives and senators," he said.</p><p class="p1">He acknowledged that there will be opposition to the legislation. He said that opponents "will tell you that these exchanges will pick up and move out of Illinois."</p><p class="p1">"Taxes of this type have already been successfully implemented in more than 25 countries without causing any exchanges, or significant volume of traders, to trade elsewhere," he said.</p><p class="p1">Silver contended that "arguments made against passage of H.B. 106 are not worth a hill of beans when compared to the benefits of every citizen of the State of Illinois."</p><p class="p1">After concluding his presentation, Silver asked the county commissioners to consider a resolution which would support the proposed legislation. </p><p class="p1">County board chairman Richard Cunningham said that the commissioners would review the proposal.</p>