Jamie Dimon, CEO of JPMorgan Chase & Co.
Giulia Marchi | Bloomberg | Getty Images
Democrats pushing for the revocation of the SALT limit have an unlikely opponent: Jamie Dimon.
In his annual shareholder letter, JPMorgan president and CEO Chase pointed to a number of cuts and loopholes in the tax code that serve special interests rather than the country’s long-term benefit. Specifically, he said “state and local governments have the same blame” because of their efforts to revoke the $ 10,000 limit on state and local tax deductions.
And he cited research showing that the vast majority of the benefits of any SALT repeal would reach the rich.
He said only five states (California, Connecticut, Illinois, New Jersey and New York) “continue to fight for unlimited state and local tax deductions (because those five states get 40 percent of the profit), even though they are aware that more than 80 The percentage of these deductions will accrue to people who earn more than $ 339,000 a year. “
Dimon’s highly public attack on the SALT repeal comes at a sensitive time for tax provision. While Biden’s corporate tax hikes and infrastructure bill do not include a SALT repeal, some Democrats in Congress, including Rep. Tom Suozzi, DN.Y., and Rep. Josh Gottheimer, DN.J. – say they will not support the Biden plan unless it includes a complete repeal of the SALT limit.
Republicans and some Democrats say a repeal would only benefit the rich (which is antithetical to Democratic Party values) and would cost the government more than $ 600 billion in lost revenue in ten years.
According to the Center for Tax Policy, more than 96% of the benefits of a SALT repeal would reach 20% of employees. It is estimated that 57% of profits would go to the top 1%.
Those in the top 1% would see an average tax cut of $ 31,000 for a SALT revocation, according to the Tax Policy Center.
So far the White House has not been committed to the issue. At a news conference Monday, White House Press Secretary Jen Psaki said “all of this will be part of the debate.”