JPMorgan Chase CEO Jamie Dimon has joined the call to tax carried interest, a provision that allows private market investors to benefit from lower taxes. Dimon’s comments align with US President Donald Trump’s recent efforts to close the loophole, which has been criticized as unfair.
The proposed tax on carried interest could generate an estimated $60 billion in revenue, which would be used to double income tax credits for individuals and families. Dimon warned that the bond market may experience a “crack” due to the US government’s overspending and quantitative easing, but believes JPMorgan and other market makers will benefit from increased volatility.
The loophole allows private fund managers to pay lower taxes on their compensation tied to profits generated. Closing it could raise tax revenue by $14 billion over 10 years, according to a Congressional Budget Office estimate. Industry groups have opposed the legislation, citing potential harm to small businesses and institutional investors.
Source: https://www.reuters.com/business/finance/jpmorgans-dimon-says-us-should-tax-carried-interest-cnbc-reports-2025-05-30