JPMorgan Chase CEO Jamie Dimon has cautioned that New York City and other cities with high taxes and regulatory burdens are at risk of losing both businesses and workers to states with more favorable business climates. In his annual letter to shareholders released alongside JPMorgan's 2025 annual report, Dimon emphasized that companies must weigh the benefits of operating in high-tax locations like New York against alternatives with lower taxes for businesses and individuals [1].
Dimon highlighted that New York City imposes the highest city and state corporate taxes as well as the highest individual income and state taxes, which he argues reduces competitiveness and lowers returns on capital. He noted that the migration of companies and employees out of high-tax states is already evident, with individuals 'voting with their feet' and a 'fairly large exodus' of people and jobs from such states [1].
At JPMorgan, this trend is reflected in the company's shifting workforce. While New York City remains the global headquarters, JPMorgan's headcount in the city has decreased from 30,000 a decade ago to 24,000 today. Conversely, the headcount in Texas has grown from 26,000 in 2015 to 32,000 today, a trend Dimon expects to continue [1].
Dimon recalled a similar exodus in the 1970s, when nearly half of the 125 Fortune 500 companies based in New York City left, primarily due to the high cost of doing business, including taxes, office rents, and labor. He warned that such departures can be disastrous for city governments and stressed that no city, company, or country has a 'divine right to success' [1].
CONCLUSION
Jamie Dimon's remarks underscore the ongoing migration of businesses and workers from high-tax cities like New York to states with more favorable tax and regulatory environments, such as Texas. The shift in JPMorgan's workforce highlights the tangible impact of these trends, which could pose significant challenges for city governments reliant on corporate presence. Market sentiment is cautious, reflecting concerns about competitiveness and future urban economic stability.