Jamie Dimon, CEO of J. P. Morgan Chase
SINGAPORE – Jamie Dimon, Chief Executive of J.P. Morgan Chase said he is not against higher taxes on the rich, but a wealth tax is not the right way to do it.
"A wealth tax is almost impossible," he told CNBC-TV18 at the J.P. Morgan India on Tuesday when asked if he was in favor of such a proposal from several Democrats.
"I am not against having higher taxes on the rich. But I think that you do that on your income instead of calculating wealth that becomes extremely complicated, legalistic, bureaucratic, regulatory and people find a million ways. I would." tax only income, "he said, suggesting that it is more difficult to cheat such a tax because income is" given ".
The US rich have begun preparing for tax hikes that are expected to occur in the coming years as state deficits have increased at both state and federal levels due to the Covid-19 pandemic. Governments have increased spending on managing health and economic crises, which has led to a decrease in their revenues.
A study published last year by the Organization for Economic Co-operation and Development found that the US lost more tax revenue in 2018 than any other developed country, largely due to US President Donald Trump's tax cuts.
I remind people, the world, when you put the brakes on the economy, you hurt the disadvantaged more than anyone else.
CEO, J. P. Morgan Chase
Democratic presidential candidate Joe Biden had announced that he would reverse most of Trump's multi-billion dollar tax cuts – which reportedly benefited companies and higher-income individuals the most.
But Dimon said the president's tax policy was one of the "very good things" he did for the US economy. He stated that the US has traditionally been a "bureaucracy society" with a bureaucracy that "slows many business down".
"And I remind people, the world, when you put the brakes on the economy, you hurt the disadvantaged more than anyone," he said.
Dimon also said governments should think more about how taxes are structured so that the economy can grow.
"There are taxes that slow growth, like taxes on capital formation or labor; and there are taxes that don't affect growth, like taxes on wealthy people like me," Dimon said.
"And I think there should be a lot more thought about taxes … if you want an active, healthy growing economy."