JPMorgan Chase director warns of business exodus in New York because of socialist Mamdani's high-tax policies
"While New York City has much going for it, particularly for financial companies (because of extraordinary local talent), it also has the highest city and state corporate taxes and the highest individual income and state taxes," Jamie Dimon said.
Jamie Dimon at the World Economic Forum/ Fabrice Coffrini.
JP Morgan CEO Jamie Dimon warned Monday about the exodus being generated in New York due to exorbitant taxes and red tape pushed by the socialist Mayor Zohran Mamdani.
The businessman's warning came in his annual letter to shareholders. In the message, the Queens native explained that the Big Apple faces stiff competition from other financial centers both in the U.S. and abroad.
"While New York City has much going for it, particularly for financial companies (because of extraordinary local talent), it also has the highest city and state corporate taxes and the highest individual income and state taxes," Dimon said.
In that regard, he noted that "People often make this a moral or loyalty issue, but it is not. Companies need to remain competitive in this very tough, fast-moving world. And higher taxes mean lower returns on capital and less competitiveness by their nature."
According to The New York Post, Mamdani has pushed to raise New York's corporate tax rate from 7.25% to 11.5% andimpose a 2% personal income tax increase on anyone earning more than $1 million a year.
The Democrat based his campaign on a promise to "tax the rich." In that regard, Dimon said, "Businesses need to stay competitive in this demanding and dynamic world."
Mamdani's team's response
“But the very people who make this city run are being priced out of it. When working people and young families cannot afford housing, when child care costs more than a mortgage in other parts of this country, we are undermining the foundation of our own economy,” the rep said.
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