- Jamie Dimon took aim at a host of carve-outs and loopholes in the tax code that serve special interests rather than the long-term benefit of the country.
- He specifically called out state and local taxes.
- The JPMorgan Chase CEO said just five states continue to fight for unlimited state and local tax deductions because those states reap 40% of the benefit.
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 aim at a host of carve-outs and loopholes in the tax code that serve special interests rather than the long-term benefit of the country. Specifically, he said "state and local governments are equally to blame" because of their efforts to repeal the $10,000 cap on state and local tax deductions.
And he cited research showing that the vast majority of the benefits of any SALT repeal would flow to the wealthy.
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He said just five 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 highly public attack on the SALT repeal comes at a sensitive time for the tax provision. While Biden's corporate tax hikes and infrastructure bill don't include a SALT repeal, some congressional Democrats — including Rep. Tom Suozzi, D-N.Y., and Rep. Josh Gottheimer, D-N.J. — say they won't support Biden's plan unless it includes a full repeal of the SALT cap.
Republicans and some Democrats say a repeal would only benefit the wealthy — which is antithetical to the Democratic Party's values — and would cost the government more than $600 billion in lost revenue over 10 years.
According to the Tax Policy Center, more than 96% of the benefits of a SALT repeal would flow to the top 20% of earners. It estimates 57% of the benefits would go to the top 1%.
Those in the top 1% would see an average tax cut of $31,000 from a SALT repeal, according to the Tax Policy Center.
So far the White House has been noncommittal on the issue. At a news conference Monday, White House press secretary Jen Psaki said "this will be all part of the discussion."