Jamie Dimon slams state and local tax repeal as a benefit to the rich

Jamie Dimon, chief govt officer of JPMorgan Chase & Co.

Giulia Marchi | Bloomberg | Getty Images

Democrats pushing for a repeal of the SALT cap have an unlikely opponent: Jamie Dimon.

In his annual shareholder letter, the chairman and CEO of JPMorgan Chase took goal at a host of carve-outs and loopholes in the tax code that serve particular pursuits slightly than the long-term benefit of the nation. Specifically, he mentioned “state and local governments are equally to blame” due to their efforts to repeal the $10,000 cap on state and local tax deductions.

And he cited analysis displaying that the overwhelming majority of the advantages of any SALT repeal would stream to the rich.

He mentioned simply 5 states — California, Connecticut, Illinois, New Jersey and New York — “continue to fight for unlimited state and local tax deductions (because those five states reap 40% of the benefit), even though they are aware that over 80% of those deductions will accrue to people earning more than $339,000 a year.”

Dimon’s extremely public assault on the SALT repeal comes at a delicate time for the tax provision. While Biden’s company tax hikes and infrastructure invoice do not embrace a SALT repeal, some congressional Democrats — together with Rep. Tom Suozzi, D-N.Y., and Rep. Josh Gottheimer, D-N.J. — say they will not help Biden’s plan until it consists of a full repeal of the SALT cap.

Republicans and some Democrats say a repeal would solely benefit the rich — which is antithetical to the Democratic Party’s values — and would price the authorities greater than $600 billion in misplaced income over 10 years.

According to the Tax Policy Center, greater than 96% of the advantages of a SALT repeal would stream to the prime 20% of earners. It estimates 57% of the advantages would go to the prime 1%.

Those in the prime 1% would see a median tax lower of $31,000 from a SALT repeal, in accordance to the Tax Policy Center.

So far the White House has been noncommittal on the concern. At a information convention Monday, White House press secretary Jen Psaki mentioned “this will be all part of the discussion.”

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