Jamie Dimon, CEO of JPMorgan Chase & Co.
Giulia Marchi | Bloomberg | Getty Images
Democrats calling for the repeal of the SALT cap have an unlikely opponent: Jamie Dimon.
In his annual shareholder letter, JPMorgan Chase president and CEO looked at 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 are equally guilty” of their efforts to repeal the $ 10,000 ceiling for state and local tax deductions.
And he cited research showing that the vast majority of the benefits of any repeal of SALTS would go to 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 have a 40% advantage), even though they are aware that over 80% of these deductions will accrue to people earning more than $ 339,000 a year. “
Dimon’s public attack on the repeal of SALT comes at a sensitive time for tax provisions. While Biden’s corporate tax increases and infrastructure bill do not include a SALT repeal, some Congress Democrats – including Rep. Tom Suozzi, DN.Y. and Rep. Josh Gottheimer, DN.J. – say they will not support Biden’s plan unless it includes a complete repeal of the SALT ceiling.
Republicans and some Democrats say a repeal would benefit only the rich – 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 Center for Fiscal Policies, more than 96% of the benefits of a SALT repeal would return to the top 20% of employees. It is estimated that 57% of the benefits would reach 1%.
Those in the top 1% would see an average tax cut of $ 31,000 as a result of a SALT repeal, according to the Center for Fiscal Policy.
So far, the White House has been uncompromising in this regard. In a press conference on Monday, White House press secretary Jen Psaki said “all this will be part of the discussion.”