Also your perma ban rule is legit thieving, what you shouldve done is perma banned the chat from me, but its a business move, you guys at Riot want us to start another account so we can spend more money on this game.
They don't. If you are going to continue the kind of behavior that resulted in your ban, they don't want you back at all. They used to have a system for returning an account to a permabanned player if he could level up to 20 and show he had reformed, but the success rate was abysmally low and nearly 100% of them went right back to causing problems. They also used to continue stacking chat restrictions for chat offenses and never moved to account bans, but that also did not work because the players would get thousands of chat restrictions and never actually change (which is counter to their goal of reform).
The fact that they let you create a new account anyway is not because they want your money, it's because A) they have no way to stop you effectively and with little effort, and B) a permaban is also a potential step in reforming players because many actually learn their lesson and turn over a new leaf with their new account.
How does this get me perma banned?
How does what? We need the chat logs if this was for a chat related offense. Even without that I can give some general information about why negative behavior can result in a permaban; There are 4 tiers of punishment, and you move up the tiers each time you get punished. Extreme behavior can result in skipping tiers, and showing reform can reduce the tier you are at over time (you can't show reform if you don't play, so just waiting it out won't help you much). Reaching the permaban step for less severe behavior would be the result of consistent negative behavior and going through multiple prior punishments first. It's hard to get all the way to a permaban.