The Bush administration last year proposed the tax in its 2003 budget proposal. Led by Hastert, members of the Illinois congressional delegation asked Bush to reconsider, arguing the change would put U.S. exchanges at a competitive disadvantage with foreign exchanges. The tax ultimately was not included in the 2003 budget resolution.
Hastert on Tuesday said he was pleased that Bush did not include the tax in this year's proposal.
"This tax would have greatly increased the operating costs of a vital Chicago industry," Hastert said. "Our nation's markets are under intense competitive attack by foreign exchanges, and a new tax would only exasperate that situation."
The tax proposal was designed to fund the entire budget of the Commodity Futures Trading Commission, the agency that regulates U.S. exchanges. However, the nation's exchanges already spend millions of dollars annually to meet the self-regulating obligations mandated by Congress.
The two largest U.S. futures exchanges, the Chicago Board of Trade and the Chicago Mercantile Exchange, are responsible for tens of thousands of jobs in the Chicago area and put over $10 billion nightly in Chicago banks.
"Ultimately, the potential economic impact of this tax makes it too risky," Hastert said. "I am pleased that our work with President Bush has prevented this tax from again being proposed."
