Jamie Dimon, chief government officer of JPMorgan Chase & Co.
Giulia Marchi | Bloomberg | Getty Photographs
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 bunch of carve-outs and loopholes within the tax code that serve particular pursuits relatively than the long-term advantage of the nation. Particularly, he mentioned “state and native governments are equally accountable” due to their efforts to repeal the $10,000 cap on state and native tax deductions.
And he cited analysis displaying that the overwhelming majority of the advantages of any SALT repeal would movement to the rich.
He mentioned simply 5 states — California, Connecticut, Illinois, New Jersey and New York — “proceed to combat for limitless state and native tax deductions (as a result of these 5 states reap 40% of the profit), though they’re conscious that over 80% of these deductions will accrue to folks incomes greater than $339,000 a 12 months.”
Dimon’s extremely public assault on the SALT repeal comes at a delicate time for the tax provision. Whereas Biden’s company tax hikes and infrastructure invoice do not embody 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 assist Biden’s plan until it features a full repeal of the SALT cap.
Republicans and a few Democrats say a repeal would solely profit the rich — which is antithetical to the Democratic occasion’s values — and would price the federal government greater than $600 billion in misplaced income over 10 years.
In response to the Tax Coverage Heart, greater than 96% of the advantages of a SALT repeal would movement to the highest 20% of earners. It estimates 57% of the advantages would go to the highest 1%.
These within the high 1% would see a mean tax reduce of $31,000 from a SALT repeal, in accordance with the Tax Coverage Heart.
To date the White Home has been noncommittal on the difficulty. At a press convention on Monday, White Home Press Secretary Jen Psaki mentioned “this might be all a part of the dialogue.”