Chicago bids farewell to former Mayor Lori Lightfoot and warmly welcomes Mayor Brandon Johnson. The highlight of the public discourse circles around whether Johnson will preserve the familiar rhythm of governance or introduce a radically dissonant approach.
Johnson’s Bold Moves Threaten Chicago’s Financial Stability
Chicago’s state of affairs under Lightfoot’s stewardship left a lot to be desired.
With Johnson at the helm, the city’s outlook seems even more daunting. Johnson, now a week into his tenure, is already making bold moves that risk complicating life and commerce in one of the nation’s most iconic cities.
— BlackMarzMedia🇺🇸✊🏾⚡️ (@BlackMarzMedia) May 16, 2023
As we steel ourselves for what lies ahead, we recall a historical pillar of the city’s strength, the esteemed Chicago Mercantile Exchange (CME).
Established in 1898, a mere 27 years after the devastating Great Chicago Fire, CME has been a symbol of Chicago’s resurgence and its ascendancy as a global financial hub, as reported by The New York Post.
Despite this illustrious history, Johnson’s proposed tax increases, deeply steeped in his far-left socialist ideology, threaten to disrupt the business-as-usual scenario.
The proposed taxes include a Financial Transactions Tax (FTT), which, if implemented, could have severe implications for CME’s Chicago-based operations.
Terry Duffy’s Stance on Johnson’s Proposed Tax Increases
FTTs, levied on the trade of financial assets including stocks, bonds, and derivatives, could increase operational costs significantly. As an experienced investment advisor, this move appears baseless, even detrimental.
However, as is often the case, my voice carries limited sway. The true test lies in whether the $66 billion market cap CME can convince Chicago’s new mayor to reconsider his taxing strategy.
During a recent conversation with Bloomberg, Terry Duffy, the CEO of CME, indicated the exchange’s readiness to relocate from Chicago “if push comes to shove.”
CME Group is the world’s biggest derivatives exchange — it’s also a trading behemoth whose name is synonymous with Chicago's financial industry.
— Bloomberg (@business) May 18, 2023
Duffy criticized Mayor Johnson’s plans, stating, “[Johnson] lacks the legal power to impose a transaction tax on my business and should avoid myopic tax hikes serving his agenda at the expense of long-term goals.”