Jamie Dimon, CEO of JPMorgan Chase & Co.
Giulia Marchi | Bloomberg | Getty Images
Democrats campaigning for the repeal of the SALT cap have an unlikely opponent: Jamie Dimon.
In its annual shareholder letter, the chairman and CEO of JPMorgan Chase targeted a number of cuts and loopholes in the tax code that serve special interests rather than the long-term benefit of the country. He specifically said that “state and local governments are equally to blame” for their efforts to lift the $ 10,000 tax on tax deductions.
And he cited research that shows that the vast majority of the benefits of any SALT repeal will flow to the rich.
He said only five states – California, Connecticut, Illinois, New Jersey and New York – “still fight for unlimited state and local tax deductions (because the five states benefit from 40%), even though they are aware that more than 80% of these deductions will go to people earning more than $ 339,000 a year. ‘
Dimon’s extremely public attack on the SALT repeal comes at a sensitive time for the tax provision. While Biden’s tax increases on corporate taxes and infrastructure do not include a SALT repeal, some Congress Democrats – including Representative Tom Suozzi, DN.Y., and Rep. Josh Gottheimer, DN.J. – says they will not support Biden’s plan unless it fully repeals the SALT cap.
Republicans and some Democrats say a recall would only benefit the affluent – which is antithetical to Democratic values - and would cost the government more than $ 600 billion in lost revenue over ten 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 is estimated that 57% of the benefits will increase to the best 1%.
Those with the best 1% would see an average tax cut of $ 31,000 due to a SALT repeal, according to the Tax Policy Center.
So far, the White House has not been committed to it. White House press secretary Jen Psaki told a news conference on Monday that it would all be part of the discussion.