In an interview on FOX Business Network’s ‘Mornings with Maria,’ JPMorgan CEO Jamie Dimon discussed tax reform, President Trump’s agenda, the Federal Reserve, and more with Maria Bartiromo. Dimon said the recent tax reform bill, which cut the corporate rate from 35% to 21% will create jobs, boost incomes and spur competition in America.
“The American economy looks like it is strengthening,” Dimon said. “This is my own personal opinion, and I can’t really prove it, but [the economy] has been kind of pent up. We were growing slow for a long time, but now the animal spirits are back. Markets are higher. Things are happening, just slower and later.”
He predicted: “You’re going to see more people coming back into the workforce, you’re going to see wage increases like we want.”
“A year from now, my guess is we’re going to be talking about inflation,” he added. “But we want wages to go up for the average American.”
About the tax reform bill, Dimon also said: “I think one of the mistakes people make is talking about what the impact is tomorrow. [The corporate tax cut] is going to have a huge cumulative effect.”
“I’m kind of surprised to see people saying an uncompetitive tax system would be good for America. If you go back 20 years ago, the world [average tax rate] was around 40%. We were at 40%. Now, most of the world is closer to 20% and we’re still at 40%. I look taxes for business — that is table stakes. It is a bad idea, and by most measures, it has driven capital and brains overseas… 5,000 companies that had been headquartered here are now headquartered overseas, mostly by the acquisition by companies overseas. It was a huge disadvantage.”
“You’re going to see companies doing things in the short run like increasing wages and a bunch of stuff like that, or one-time bonuses,” Dimon told Bartiromo. “We may do something, we’ll announce it sometime later, but over time that retained capital will be used to grow businesses, R&D, hire people, wages, competition and over time that will be very good for America.”
“The number one thing for jobs is a healthy and vibrant economy, which drives jobs and wages. The competitive tax system, proper smart regulation, cutting some of the bureaucracy, those will help jobs. Infrastructure, we have to fix that. Inner city education, half the kids don’t graduate… that’s not good… and we have to fix it,” he said later. …read more