Thursday, December 18, 2008

After $10 Billion Bailout, Goldman Sachs’s Pays 1% in Taxes

Bloomberg reported Tuesday, Goldman Sachs’s Tax Rate Drops to 1%, or $14 Million.

"Goldman Sachs Group Inc., which got $10 billion and debt guarantees from the U.S. government in October, expects to pay $14 million in taxes worldwide for 2008 compared with $6 billion in 2007.

The company’s effective income tax rate dropped to 1 percent from 34.1 percent, New York-based Goldman Sachs said today in a statement. The firm reported a $2.3 billion profit for the year after paying $10.9 billion in employee compensation and benefits.

Goldman Sachs, which today reported its first quarterly loss since going public in 1999, lowered its rate with more tax credits as a percentage of earnings and because of ‘changes in geographic earnings mix,’ the company said."

"This problem is larger than Goldman Sachs,” [US Rep Lloyd] Doggett [D-TX] said. “With the right hand out begging for bailout money, the left is hiding it offshore."

No comments: