Despite the fact that Delaware will give millions of dollars to JP Morgan Chase (JPMC) over the next three years, and despite record-breaking profits and the Trump corporate tax cuts, the firm just quietly reduced its pension plan contributions for future employees.
The Delaware Economic Development Office will directly support JPMC with up to $9 million in Strategic Fund grants over the next three years, to fund construction projects at JPMC’s Delaware locations. Also, the State will use the Strategic Fund to provide JPMC with $1.5 million over the next three years to support training for new hires.
Last year, JPMC had the most profitable year of any bank in history. The first quarter of 2018 was the firm’s most profitable quarter ever, at 35% over the first quarter of 2017. Further, due to President Trump’s corporate tax cuts, JPMC’s effective tax rate has dropped significantly, down 28% to 21% in the second quarter of 2018. JPMC has spent a lot of those tax savings buying back its own stocks, insisting the practice is “good for the economy as a whole.”
JPMC continues to post record profits virtually quarter after quarter, year after year. CEO Jamie Dimon was compensated with $29.5 million in 2017, a 5% increase over his 2016 compensation. Also, JPMC is demolishing its current Manhattan headquarters, and building a massive new Manhattan headquarters that will be 50 stories taller than the current one.
Yet, JPMC just cut its pension plan contributions for future employees.
Currently, for employees with 0-9 years of service, JPMC contributes 3% of employees’ annual salary to their pension; 4% for employees with 10-19 years of service; and 5% for employees with 20+ years of service. But employees hired January 1, 2019 or later will receive a 3% pension contribution, no matter how many years of service they achieve. (Existing employees are grandfathered into the current 3%/4%/5% contribution model.)
Delaware taxpayers supporting this massive, uber-successful bank with our hard-earned tax dollars deserve to know how it treats its employees.
And the “beat” goes on, the beat goes on. (See “Solenis” and follow the further adventures of the “Delaware Prosperity Partnership” as they empty the Delaware taxpayers wallets, “Merry Christmas” Corporate America from all of us)
Representative John Kowalko
Corporate Welfare has yet to work anywhere, ever. How many schemes, scams and “brilliant ideas!” have we seen from Dover? How many have worked? I can answer the second question: NONE. You cannot “create jobs” by appeasing a rapacious big bank,, and they” be back for more.
And the WORST is Bloom and their current job openings:
7 in India
1 New York
1 Connecticut
45 in California
AND 10 (TEN) IN DELAWARE!!!! People need to wake up and start pounding their elected officials over this, its a TAX!
And of those 10 in Delaware, how many will be filled by a current Delaware resident instead of people from elsewhere? I’m not aware that figure is ever disclosed when these deals go through.
It doesn’t matter to the state where they’re from. The key is they’ll pay taxes on a Delaware job. If you only care about people who already live here you shouldn’t be upset about the closure of the auto plants, many of whose employees did not live in Delaware.
Oh no, not a tax! If you actually paid attention to this issue you’d be of some value, but you don’t so you’re not. The Caesar Rodney Institute just had yet another article about Bloom last week, but you apparently missed it.
Have you ever calculated how much you personally have paid to Bloom Energy? If it’s refunded to you, will you shut up about it at last?
@ Alby…..Yes, with interest, please. And return everyone else’s money as well. They’re rolling in money, now! Personally, if I making an investment into a company, I would like to get a ROI! If our elected officials are doling out money, then put incentives in. It would have worked for poor investments like Fisker and Bloom. Now, their pushing money on companies, in case they might leave.
So how much do they owe you?
They did all that you request at the time. The right time to oppose it was when it was proposed. Few opposed it because all elected officials at the time, regardless of party, wanted to be able to tell a panicky public that they were doing something about jobs. This was the reality at the time. A poor deal was seen as better than no deal at all. Therefore everything you write is beside the point.
Everyone knows it was a bad deal, but people at left-leaning sites like this one aren’t so much interested in single-issue advocacy. That’s a right-wing thing. You’ll notice that this site has consistently been against these deals, Bloom included. But the priority is preventing future abuses rather than beating our heads in court over this one. Undoing it would take a decade of legal wrangling, minimum, because Bloom has a contract. Even if the state could ultimately prove Bloom has violated it, it would likely be overturned in court. It’s just not worth the effort.
Whining about it incessantly here doesn’t seem to be getting you anywhere. Perhaps you should try something else. Have you connected with the people at Caesar Rodney Institute? They might be able to help you direct your energies.
I am from Wilmington but live in Philly. Riding the Septa train to Wilmington in the morning carries almost the whole train being Chase employees!!!!!!
@Keefe: What would it take to get some of those folks to live in Wilmington instead?
Because New Castle County is underpopulated and those Chase people would be just what’s needed to kick-off a housing bubble that’s served San Francisco, Vancouver and New York so well.
I think you’re overestimating how much the people we’re talking about earn.
@ Alby..Maybe, it’s the public school system in Delaware.
Maybe it is, but I asked him, not the regulars here.
And if you’re worried about public schools, you don’t live in the city of Philadelphia.
No, went to Parochial schools in PA.
I didn’t mean you personally, I meant anyone. Philadelphia schools are atrocious. So someone taking the train from Philly to a job in Delaware is not living in Philly for the schools.
In my experience, young single people, or childless couples, who get jobs in Delaware like living in Philadelphia because it’s a big city with lots to do. They tend to move to the suburbs if and when they have kids. But my experience with this is 10-20 years out of date, so I was hoping this new guy could provide some insight.
Immunity from prosecution when the next bank scandal hits?