Jamie Dimon, chief government 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 purpose at a host of carve-outs and loopholes in the tax code that serve particular pursuits relatively 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 circulate 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 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 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 value 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 circulate to the high 20% of earners. It estimates 57% of the advantages would go to the high 1%.
Those in the high 1% would see a median tax reduce of $31,000 from a SALT repeal, in accordance to the Tax Policy Center.
So far the White House has been noncommittal on the challenge. At a information convention Monday, White House press secretary Jen Psaki mentioned “this will be all part of the discussion.”