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Jamie Dimon smashes state and local tax cuts as a benefit to the rich

Jamie Dimon, CEO of JPMorgan Chase & Co.

Giulia Marchi | Bloomberg | Getty Images

Democrats pushing 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 aimed at a host of cuts and loopholes in the tax law that serve special interests rather than the long-term benefit to the country. Specifically, he said “state and local governments are equally guilty”

; because of their efforts to lift the $ 10,000 ceiling on state and local tax deductions.

And he cited research that showed that the vast majority of the benefits of any SALT repeal 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 these five states reap 40% of the benefit), even though they are aware that over 80% of these deductions go to people who earn more than $ 339,000 a 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 bill do not include a SALT repeal, some congressional Democrats – including Rep. Tom Suozzi, DN.Y. and rep. Josh Gottheimer, DN.J. – state that they will not support Biden’s plan unless it includes a complete abolition of the SALT ceiling.

Republicans and some Democrats say a repeal would only benefit the wealthy – contrary to the values ​​of the Democratic Party – and would 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 repeal would flow to the top 20% of employees. It is estimated that 57% of the benefits will go to the top 1%.

Those in the top 1% would, according to a tax policy center, see an average tax cut of $ 31,000 from a SALT repeal.

So far, the White House has been non-binding on the issue. At a press conference on Monday, White House Press Secretary Jen Psaki said “this will be part of the discussion.”

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