Morgan Chase CEO Fears Corporate Tax Cuts Could Increase The National Debt
In most situations, corporate tax cuts are something that are met with open arms. JP Morgan Chase CEO Jamie Dimon though has other thoughts. Dimon believes that the proposed corporate tax cuts by the President Donald Trump Congress could be one that could backfire and put the country in worse shape than it is already in. Dimon believes that the new Trump tax overhaul plan and package could be one that could increase the national debt over the next ten years by $1.5 trillion.
Dimon has been one of the spearheads of major American CEO’s who have been looking to reduce the national debt over the past five years. It was back in 2012 when Dimon hosted a ‘Fix The Debt’ summit at the JP Morgan Chase headquarters in New York City. Some of the big name corporate heads that were at that meeting were ones such as David Cote of Honeywell, Lloyd Blankfein of Goldman Sachs, and people of Congress such as Virginia Democratic Senator Mark Warner and the Republican ranking senator from Tennessee in Lamar Alexander.
‘The inability to face our fiscal reality is a concern’ wrote Dimon in his yearly letter to company investors and executives at the end of 2012. Dimon went on to say that he believe that corporate CEO’s should have adopted a form of the Simpson-Bowles plan in order to fix the national debt. The Simpson-Bowles plan was the brainchild of President Bill Clinton’s chief of staff Erskine Bowles and the former Wyoming Republican Senator in Alan Simpson . Simpson was most infamous for warning that the ‘national debt is a cancer that will destory this country from within’. This plan was one that was aimed at reducing the national debt by $4 trillion while at the same time raising taxes and working to eliminate most useless entitlements.
The new Trump era corporate tax cuts and overhaul is one that is the exact opposite of the Simpson-Bowles plan and this is what has Dimon worried Bayrock. This new plan is looking at reducing taxes and the thing is that the corporate CEO’s who once were for raising the taxes and were in line with Dimon have changed their views and are going along with the President. This means that the national debt could see an increase of $1.5 trillion over the next ten years according to the Morgan Chase CEO.
Dimon states that while there is some opposition to a point, there is no other choice but to endorse this new plan being put forth by the Trump Congress.
‘Passing tax reform is the single most important thing that Congress can do to make American companies more competitive, boost the economy, create jobs and spur wage growth. If the House and Senate continue to move forward to deliver tax relief for hard working American families, business leaders will continue to advocate for comprehensive pro growth reform’ said Dimon.
Dimon has acknowledged that reversing the course of the ‘Fix the Debt’ campaign of 2012 is a hard one to take. Dimon says he is looking long term and that the increase in jobs and wages because of the corporate tax cuts could win in the end but will take some time. Still there are those that believe that corporate CEO’s are only interested in getting tax cuts for themselves and not focusing on the individual tax brackets which in turn could mean the middle and lower class bearing the weight of taxes over the next ten years.