Jamie Dimon supports the ‘Warren Buffett Rule’ to tax the rich. He says it will solve America’s debt problem – ‘I would spend the money that helps make America a better country’ – JPMorgan Chase (NYSE:JPM)

To deal with the escalating US debt crisis, Jamie DimonCEO of JPMorgan Chase & Co.has proposed a possible solution: taxing the rich at the same or higher rate than the middle class.

What happened: During an interview with “PBS News Hour,” Dimon expressed his belief that the U.S. could tackle its growing debt without having to make drastic spending cuts. He said it was possible to pay down the debt while investing in useful initiatives, according to a Business Insider report on Thursday.

“I would spend the money to make the country a better country. Some of it will go to infrastructure, to tax breaks for earned income and to the military,” Dimon said. He also proposed a competitive national tax system and maximizing growth.

Dimon’s proposal is reminiscent of the “Warren Buffett Rule,” which stipulates that households with annual incomes of over $1 million should not pay a smaller share of their taxes than the middle class. This principle was named after the billionaire investor, Warren Buffetwho famously criticized the fact that his secretary paid a higher tax rate than he did.

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Calls for higher taxes on wealthier Americans have grown louder over the past year as economists look for solutions to the exploding national debt, which has now reached a record $35 trillion. Failure to rein in the debt could lead to higher borrowing costs and a possible default, some experts say.

Despite Dimon’s optimism, not everyone agrees that tax increases alone can solve the problem. Some say both Democrats and Republicans should also consider cutting spending.

Why it is important: Dimon’s proposal is consistent with previous calls for higher taxes on the super-rich, including those made by Warren Buffett in 2011. Buffett has long advocated tax policies that improve the quality of life of the average citizen.

Recent reports have shown that the effective tax rates of the super-rich are lagging behind those of the working class for the first time in history, according to a May 2024 Benzinga report.

As wealth concentration becomes a global problem, economists have suggested that a minimum tax proposal for billionaires could soon become a reality, as Benzinga reported in August 2024.

According to Forbes, Dimon’s net worth is estimated at $2.3 billion. He has been CEO of JPMorgan Chase since 2006 and its chairman since 2007. It was previously reported that the Republican presidential candidate Donald Trump had his eye on him as finance minister.

Photo by Dustin Blitchok.

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Disclaimer: This content was created in part using AI tools and reviewed and published by Benzinga editors.