Monday, June 16, 2014

Extreme Acts of Greed Against the American People by Paul Buchheit




 















 
“...$1,000,000,000,000,000 in Sales. Not One Cent for Sales Tax: The trading volume on the Chicago Mercantile Exchange (CME) reached an incomprehensible $1 quadrillion in notional value in 2012. That's a thousand trillion dollars. In comparison, the entire U.S. GDP is $17 trillion. On that quadrillion dollars of sales CME imposes transfer fees, contract fees, brokerage fees, Globex fees, clearing fees, and contract surcharges, many of them on both the buyer's and seller's side. As a result, the company had a profit margin higher than any of the top 100 companies in the nation from 2008 to 2010, and it's gotten even higher since then.

“But not a penny in sales tax for the taxpayers who provide publicly-funded infrastructure, technology, systems of law, and security to help them process billions of financial transactions. Instead -- incredibly -- CME complained that its taxes were too high, and they demanded and received an $85 million tax break from the State of Illinois… 

“Extreme Fees: Nickeled and Dimed until the Retirement Fund is Almost Gone: The one- to two-percent fees don't seem like much, but savvy financial minds know better. It has been estimated that the average underserved household spends $2,412 each year just on interest and fees for alternative financial services. Food stamp recipients have to pay companies like JP Morgan to process their benefits. The unemployed are getting their benefits through banks who issue fee-laden debit cards instead of cash. And it's not just low-income households paying the fees. A two-earner household with median incomes will pay an average of over $150,000 in 401(k) fees over their lifetimes.

“The fees are not only draining us individually, but also at the levels of local and state government. Los Angeles last year spent more on Wall Street fees than it did on its streets. In Detroit, financial expenses might approach a half billion dollars, in a city where homeowners can barely afford the water services. Chicago may end up paying Morgan Stanley $9.58 billion for a $1.15 billion parking meter deal. And in Rhode Island, it has been projected that the state will pay $2.1 billion in fees to hedge funds, private-equity funds and venture-capital funds over twenty years, the same amount the state will be taking from workers by freezing their cost of living adjustments.

“Solutions? All these issues have solutions: a wealth tax... public banks and Post Office banks... But the best solution may be another American Revolution.”




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