Thursday, December 08, 2011

But I'm sure he's really smart about something or other.

The CEO of a Wall Street firm like JP Morgan should be super-informed about economic matters, right? Being paid millions of dollars and all that, he should be up on his game?

Not so much, Yglesias notes:
Next time you read an article about the behavioral response to marginal tax rates on high income earners, I would urge you to refer back to JP Morgan Chase CEO Jamie Dimon's fine whine that "most of us wage earners are paying 39.6 percent in taxes and add in another 12 percent in New York state and city taxes and we're paying 50 percent of our income in taxes."

The thing about this is that the actual top marginal income tax rate is 35 percent. The entire debate in congress over taxes is that President Obama wants to restore the top marginal rate to the level that Dimon thinks it already is. Meanwhile, Dimon doesn't even know what tax rate he pays. Just saying.
I would also note that, as far as I can tell, no one is forcing Mr. Dimon to live in New York. Connecticut has a lower max (6.5% vs. 8.97% in NY/NJ).

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