JPMorgan Chase CEO Jamie Dimon has joined President Trump’s push to close a long-standing loophole on carried interest, a provision that allows private market investors to benefit from lower taxes. The current tax treatment of carry, which is tied to profits generated by fund managers, is seen as unfair and should be taxed like ordinary income.
Dimon suggested that the revenue generated by closing this loophole could be used to double income tax credits for individuals with children. He added that the money would directly benefit communities.
The move has been met with resistance from private equity and hedge funds, which argue it could harm small businesses and institutional investors. Industry groups had previously opposed Trump’s plan to close the loophole in February. A 2021 Congressional Budget Office estimate suggests that closing the provision would raise tax revenue by $14 billion over 10 years.
As the issue remains unresolved, Dimon’s call for taxing carried interest underscores the ongoing debate on this contentious tax break and its potential impact on the economy.
Source: https://nypost.com/2025/05/30/business/jamie-dimon-says-us-should-be-taxing-carried-interest