JPMorgan Chase’s Jamie Dimon and IBM’s Ginni Rometty on tax reform, U.S. economy, DACA

Republicans lawmakers are expected to be only days away from unveiling a tax reform plan, though many of the details are still under wraps. On Tuesday, “CBS This Morning” co-host Norah O’Donnell sat down with JPMorgan Chase CEO Jamie Dimon and IBM chief executive Ginni Rometty to talk tax reform and how the government can help accelerate economic growth.

The powerful business leaders discussed what they believe would happen if the corporate tax rate was cut, why solving DACA is not only a priority but a “moral” issue and addressed questions about a potential presidential ticket. Dimon also explained his controversial comments during a July earnings call where he called being an American “almost an embarrassment.”

Tax reform needs to be more than “modest tax cuts” 

Norah O’Donnell: “Jamie, what’s the single most important thing Congress can do to jump-start the economy?”

Jamie Dimon: “The single most important thing bar none right now is tax reform. But it’s important the American public know — it’s important because business vibrancy is what creates jobs and wages.” 

O’Donnell: “I think everybody knows that our tax code is overly complex but how is it uncompetitive?”

Ginni Rometty: “Well it’s uncompetitive in a few ways, but I think in addition to being over-complex, just give it a little perspective, it has been 30 years since there has been really major tax reform. And, if any of us think back 30 years, no cell phone, no internet. So, I mean, that should just tell you something about how out of date it is.”

O’Donnell: “But, are we going to get tax reform or is it just going to be tax cuts?”

Dimon: “We are going to give everything we can to get real reform because modest tax cuts won’t make the difference. We need tax reform, lower rates, simpler system for both individuals and for corporations to have a more competitive system. We have driven $3 trillion overseas now that’s being reinvested overseas because people can do a better job for the shareholder if it is reinvested overseas.”

O’Donnell: “Because the corporate tax rate is too high?”

Dimon: “The corporate tax rate, and it’s also a huge advantage for foreign companies to buy American companies.”

Rometty: “The big picture for everyone is: us being competitive means the economy grows and more jobs.”
 
O’Donnell: “What would happen if you cut the corporate tax rate, which is about 35 percent now, to let’s say, 20 percent? What would happen? What would the effect be?”

Rometty: “It’s going to cause…

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