JPMorgan CEO Jamie Dimon is a straightforward person. Dimon, who has long advocated for policies to support America’s most disadvantaged communities, repeated his call to increase income tax credits, even if it meant imposing higher taxes on the wealthy.
The Wall Street veteran stated that he would be more than willing to pay more taxes himself if he knew the funds would end up in the hands of those in need, rather than going into Washington’s coffers.
The 69 – year – old banker said that although the U.S. economy is performing relatively well, consumers are living in a K – shaped economy. This refers to the different situations of wealthy individuals and those with lower incomes: The wealthy keep getting richer, while those with lower incomes are getting poorer.
Upper – income earners are doing “much better,” Dimon said. “They own houses and stocks.” The lower – income group doesn’t have a savings buffer, he added, as jobs are becoming harder to find and income growth has stalled. One way to address this imbalance, he said, is to double the income tax credit.
He explained: “I would give working people more money through a negative tax … I’d remove the child requirement. You’re giving it to the people who will actually use it to improve their lives, spend in their communities, and take care of their kids, instead of the government dictating how to spend every single dollar.”
Of course, there are two ways to finance such a fiscal stimulus. One, which many administrations have tried, is to simply write off the income that the taxes would have brought in for the government. Dimon argues that this might be justifiable because the economic growth spurred by consumer spending would offset the tax losses.
On the other hand, the U.S. is currently facing a significant federal deficit. For example, in the fiscal year 2025, the government spent $7 trillion to run the country but only raised $5.32 trillion in revenue from sources such as taxes and import duties. This left a deficit of $1.78 trillion, which was immediately added to the ever – growing national debt.
The national debt now exceeds $38 trillion, with… in the last three months of FY 2025. So, as Dimon suggests, further reducing revenue through tax cuts may be a difficult sell.
But even if taxes had to be raised a little, “that’s okay,” Dimon said. The problem is that when taxes are increased, ordinary people see no change in their surroundings. “Who thinks that sending another trillion dollars to Washington, D.C., will actually make things better?” the CEO asked. “If you said, ‘Raise taxes and directly give it to the people who need it’? I’d do it.”
But “that’s not what happens,” the banker continued, claiming that the funds are instead given to interest groups and their “friends … That’s why people think it’s a swamp,” Dimon added. “It’s kind of a swamp.”