Jamie Dimon says US should be taxing carried interest

JPMorgan Chase CEO Jamie Dimon Calls for Taxing Carried Interest

JPMorgan Chase CEO Jamie Dimon spoke at the Reagan National Economic Forum and advocated for taxing carried interest, a tax loophole that benefits private market investors with lower taxes.

“We absolutely should be taxing carried interest,” Dimon stated, aligning with President Trump’s efforts to close this long-cherished provision for investors.

Dimon proposed using the revenue generated from taxing carried interest to double income tax credits for families with children, emphasizing that this money would directly benefit communities.

Carried interest, which is a portion of private fund managers’ compensation tied to profits, is currently taxed as a long-term capital gain, enabling fund managers to pay lower taxes than on ordinary income.

Closing this loophole has garnered bipartisan support for over a decade, with various administrations pledging to address the issue. A 2021 Congressional Budget Office estimate suggests that closing the loophole could raise $14 billion in tax revenue over a decade.

Despite the potential benefits, private equity and hedge funds have opposed such measures, arguing that they could have negative repercussions on small businesses and institutional investors like endowments and pension funds.

In February, industry groups pushed back against President Trump’s proposal to eliminate this lucrative tax benefit.