JP Morgan CEO: "Biden Administration's Tax Hike Will Be America's Mistake"

▲Jamie Dimon, CEO of JP Morgan [Image source=Reuters News]

[Asia Economy Reporter Kwon Jae-hee] Jamie Dimon, CEO of JP Morgan, directly criticized the Biden administration's tax increase plan, calling it "a mistake."

On the 27th (local time), according to Bloomberg and CNBC, Dimon appeared before the House Financial Services Committee and said the Biden administration's tax increase plan would be "harmful to many American companies," adding that it would "cause capital, talented personnel, research and development, and investment to flow overseas."

He pointed out, "This will be a mistake for the United States."

Jane Fraser, CEO of Citigroup, a major U.S. financial firm who also appeared before the Financial Services Committee, made a similar remark, saying, "It will be very difficult for other countries to agree on equivalent programs," and "this could weaken the competitiveness of the United States."

CNBC reported that they have expressed opinions that the Biden administration's push for a global minimum corporate tax rate may face challenges in the long term, as other countries might provide incentives through 'back doors' or fail to properly implement the agreement.

The Biden administration has been pushing to raise the current corporate tax rate from 21% to 28%, and to increase the tax rate on overseas profits of companies to 21%.

In response to concerns about U.S. companies relocating overseas, the administration proposed setting a global minimum corporate tax rate, initially suggesting 21%, but recently lowered it to 15% after disagreements prevented consensus.

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