Jamie Dimon walks on a New York City street with a glowing Texas outline superimposed.
JPMorgan Chase CEO Jamie Dimon is sounding the alarm: New York City’s high taxes and regulatory burdens are driving businesses and workers away. In his annual letter to shareholders, Dimon highlighted the growing appeal of states like Texas, which offer a more favorable business climate.
“Companies need to remain competitive in this very tough, fast-moving world,” Dimon wrote. “And higher taxes lower returns on capital and less competitiveness by their nature.” He pointed out that individuals are also “voting with their feet,” leading to a significant exodus from high-tax states.
JPMorgan’s own actions reflect this trend. While New York City remains the company’s global headquarters, its headcount there has shrunk from 30,000 to 24,000 over the past decade. Meanwhile, in Texas, JPMorgan’s headcount has grown from 26,000 in 2015 to 32,000 today. Dimon anticipates this shift will continue.
Dimon draws a parallel to the 1970s, when nearly half of the Fortune 500 companies based in New York City left due to the high cost of doing business. He cautions that cities must remain competitive to avoid a similar fate. “No city – or company or country – has a divine right to success,” Dimon added, emphasizing the need for governments to create an attractive environment for businesses and individuals.
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