Jamie Dimon on Tax Reform: It’s Time to ‘Get It Done’
Jamie Dimon’s view on tax reform
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Dimon said, “Let’s judge any proposal on whether or not it will result in greater economic growth, more jobs and higher wages while allowing American businesses to be competitive internationally, If so, let’s get it done.”
The Trump administration has designed a tax reform framework that reduces corporate tax to 20% from the current rate of 35%. Dimon said this reform framework “has all of the key ingredients to fuel economic expansion.”
How tax reform could help the economy
Companies can use tax savings to pay higher dividends to shareholders, invest in various projects, and to expand production capacity. Thus, tax reforms could boost employment and increase wage growth in the US economy (SPY) (QQQ) (IWM). According to Dimon, tax reform will create nearly 2 million new jobs.
More employment and higher wage growth will likely increase consumer activity, which is highly necessary for economic expansion. Thus, Dimon believes that tax reform should be implemented as soon as possible.
In the next part of this series, we’ll analyze Jamie Dimon’s view on how tax reform will impact US businesses that have overseas operations.