JP Morgan CEO Jamie Dimon has raised concerns about the business environment in New York City (NYC). In his latest letter to the bank’s shareholders, Dimon has warned that New York’s rising taxes and regulatory pressures could affect the city’s competitiveness. In the letter, he pointed to ongoing shifts in the business landscape and highlighted the need for cities to remain competitive with other financial centres in the US and globally. His comments come amid debate over policy proposals from NYC mayor Zohran Mamdani and broader concerns about the city’s economic conditions.“Cities — like individuals, companies, and countries — need to compete. No matter who you are, you need to deal with reality and the truth. The truth is that while New York City has much going for it, particularly for financial companies (because of extraordinary local talent), it also has the highest city and state corporate taxes and the highest individual income and state taxes. People often make this a moral or loyalty issue, but it is not,” Dimon wrote in the letter.

What JP Morgan CEO Jamie Dimon said about NYC mayor Zohran Mamdani

It’s important to note that Dimon didn’t name Mamdani in his latest annual letter, but he had earlier taken a dig at the NYC mayor. After Mamdani’s win last year, Dimon said, “This guy just got elected – he’s more of a Marxist than a socialist, and now you see these Democrats falling all over themselves saying, ‘Well, he’s pointing out some real problems, affordable housing and grocery prices.’”At that time, he added that Mamdani pushes “the same ideological mush that means nothing in the real world.” Mamdani has proposed tax increases, including raising corporate tax rates and adding a 2% personal income tax on incomes above $1 million, both subject to approval from New York Governor Kathy Hochul.In his letter, Dimon wrote, “Companies need to remain competitive in this very tough, fast-moving world. And higher taxes mean lower returns on capital and less competitiveness, by their nature. You can already see a fairly large exodus of people and jobs out of some states with high taxes and high expenses.” He also noted that JPMorgan’s New York office headcount has declined while total staff in the Texas office has increased, suggesting that the trend could continue.A spokesperson for Mamdani said, “New York City remains the best place in the world to do business,” adding, “That is why Mayor Mamdani is focused on both sides of this equation: continuing to grow the economy, while finally taking on the cost of living crisis with the urgency it demands.” Meanwhile, a spokesperson for Hochul said she is “proud to see JP Morgan Chase continue to invest in New York,” and will work to improve affordability and support businesses.In his letter, Dimon also referred to broader economic concerns, including global tensions, writing, “the potential for significant ongoing oil and commodity price shocks, along with the reshaping of global supply chains, which may lead to stickier inflation and ultimately higher interest rates than markets currently expect.” “We should not turn a blind eye to the role the current regime in Iran has played in fostering terrorism and killing thousands of people, including Americans and many of its own citizens, over many years. That threat must be addressed in an appropriate manner,” he added.