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Jamie Dimon Says American Workers Will Be the True Beneficiaries of Corporate Tax Reform
Despite controlling the White House and both chambers of congress, the Republicans’ failure to pass a repeal of Obamacare, leading President Trump to begin gutting the health care law through executive order, has now caused some skepticism about the GOP’s ability to pass the comprehensive corporate tax reform that – like the Obamacare repeal – was a centerpiece of Trump’s campaign.
Perhaps recognizing this uncertainty – and, well, congressional dysfunction – Jamie Dimon is voicing his support for corporate tax reform, arguing that the true winners of this reform will be American workers. In a commentary written for NBC News’ THINK website, the JPMorgan chief executive says the GOP’s framework for tax reform released last month “has all of the key ingredients to fuel economic expansion,” including “a business tax rate that will make the U.S. competitive around the world; provisions to free U.S. companies to bring back profits earned overseas; and importantly, tax relief for the middle class.”
Dimon, who serves as the chairman of the Business Roundtable, which includes more than 200 CEOs from the largest employers in the U.S., cites estimates provided by accounting firm EY to the roundtable showing how “a competitive 20% corporate tax reduction could support the creation of as many as 2 million new jobs if the tax savings went to new job creation.” Dimon also notes that “76 percent of CEOs of leading U.S. companies say that they would increase hiring if tax reform were enacted, and 82 percent would increase capital spending,” according to a recent survey conducted by the Business Roundtable.
“That is meaningful commitment to invest in America, and will move the needle for job creation and wages in this country,” Dimon writes.
Our current tax code is uncompetitive, overly complex and loaded with special interest provisions that create winners and losers. This drives down capital investment, reduces productivity and causes wages to remain stagnant. Under our current system, workers bear up to 75% of the corporate tax burden through lower wages.
Tax reform can and should do more for lower- and middle-income workers by expanding programs such as the earned income tax credit, which lifted 7.3 million workers out of poverty in 2014, according to an AEI study.
Dimon said in a post-earnings conference call with the media that JPMorgan will go on a hiring spree if tax reform gets passed, according to CNBC.