1. $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.
Now my research into the validity of this claim of $1 qaudrillion in trading says that was true for 2011 but was down to $806T in 2012. Look at the bottom of the Table on page 2 of 2012 CME GROUP Annual Report
Assuming the 2012 trading amounts of $806T, if we would place a 2.2% tax on the CME for 1 year, we could eliminate the $17.5T national Debt. If the volume is down due to the tax, we could tax the NYSE trading as well. Remember we citizens pay 7-10% sales tax on purchases but when the investor class purchases stocks/commodities, not one cent is taxed (for government use).
Among other good links in Buchheit’s article is the Profit Margins of major American companies (2008-2010). See attached.
53.9% profit margin for CME
45.4% for Berkshire-Hathaway (owned by Warren Buffet)
32.9% Goldman Sachs
28% Wells Fargo
15.1% Exxon-Mobil with the second largest revenues ($1.1T/year) to WalMart’s $1.2T/year.
9.6% UPS (after they and Fed-X lobbied in 2006 that the USPS had to save for 75 years of retirement benefits; that way Repugs in Congress could point to USPS “inefficiencies" while taking campaign cash from USPS and Fex-X- what a deal)
-21.5% Citigroup (what did they do wrong?)
Read the rest of Buchheit’s article for more examples of greed.