Jamie Dimon believes we should be focusing our tax attention on education spending.
JPMorgan Chase Chief Executive Jamie Dimon said the lion’s share of America’s taxes should be paid by the wealthy. This he said on Tuesday in a budget debate as government shutdown concerns threatened. Dimon also favors government spending cuts spoke amid Republicans and Democrats disagreement during a White House meeting. The Tuesday meeting was about creating a budget deal to enable government operations beyond Friday. House Republicans also announced a long-term budget deficit plan that would center on spending cuts, Medicare and Medicaid included.
Dimon said as one of the well-off Americans, he has no problem paying taxes. He thinks the other well-offs should also pay a big part and thinks there is just no going on endlessly spending money. He singled out education spending to be where utmost care should be applied as he moaned about the opportunities shortage for lower-income students. He cautioned the U.S. about non-resolution of the budget problems which will push government debt investors to force future budget cuts by snubbing U.S. securities.
Dimon said if America is not voluntarily fiscally responsible, it will be involuntarily fiscally responsible. In the meeting, Dimon also told about new international bank capital standards being extreme which may slow down economic growth. He believes the economy has already been stifled.
The new Basel III rules to be introduced before 2013 will approximately go 3 times up to 7% of a bank’s minimum core capital to survive shocks. It is also to avoid having the taxpayers shoulder the bill in the next financial crisis. International major banks called “SIFIs” may have to have an extra capital to better prepare for another global shock.
Global banks may already be deleveraging getting ready for the potential Bassel III global SIFI charges impact, said Dimon. He warned of Dodd-Franks Wall Street reform law’s anti-competitive consequences. New rules covering the almost $600 trillion over-the-counter derivatives market could drive business management, criticized Dimon. The same criticisms were said by him during the U.S. Chamber of Commerce event last week.
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