Jamie Dimon, CEO of JPMorgan Chase & Co.
Giulia Marchi | Bloomberg | Getty Images
Democrats pushing for a rescission of the SALT cap have an unlikely adversary: Jamie Dimon.
In his annual shareholder letter, JPMorgan Chase’s Chairman and CEO focused on many carve-outs and tax loopholes that serve special interests rather than the long-term benefit of the country. In particular, he said that “state and local governments are equally guilty” for their efforts to lift the $ 10,000 ceiling for state and local tax credits.
And he cited research showing that the vast majority of the benefits of an eventual SALT withdrawal would flow to the wealthy.
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 reap 40% of the benefit), even though they know more than 80 % of those deductions accrue to people who earn more than $ 339,000 per year. “
Dimon’s very public attack on the SALT repeal comes at a sensitive time for the tax provision. While Biden’s corporate tax increases and infrastructure law do not include a SALT repeal, some Congressional Democrats, including Rep. Tom Suozzi, DN.Y., and Rep. Josh Gottheimer, DN.J. – say they will not support Biden’s plan unless it involves a complete withdrawal of the SALT limit.
Republicans and some Democrats say a repeal would only benefit the wealthy – which contradicts the values of the Democratic Party – and cost the government more than $ 600 billion in lost revenue over 10 years.
According to the Tax Policy Center, more than 96% of the benefits of a SALT withdrawal would flow to the top 20%. It estimates that 57% of the benefits would go to the top 1%.
Those in the top 1% would see an average tax cut of $ 31,000 from a SALT repeal, according to the Tax Policy Center.
So far, the White House has been noncommittal on the matter. At a press conference on Monday, White House press secretary Jen Psaki said, “this will all be part of the discussion.”