Goldman Sachs Swamp to Be Drained of $5 Billion by Trump Tax Reform

Joe Scudder
Written by Joe Scudder

People have claimed the Trump Administration protects Wall Street, but Goldman Sachs report provides counter-evidence.

Goldman Sachs is losing $5 billion due to tax reform. I don’t take pleasure in any innocent person losing money to taxes, whether rich or poor. But I still remember George W. Bush and Hank Paulson and the rest of the crew in 2008 spending many more billions in money from tax payers to bail out Goldman Sachs. Indeed, the artificially low interest rates that have been imposed on us by the Federal Reserve are a subsidy of Goldman Sachs at the expense of pension benefits. So, I’m not shedding any tears for the Goldman Sachs swamp!

The Associated Press reports, “Goldman Sachs expects $5 billion hit from tax overhaul.

Goldman Sachs expects to take a $5 billion hit to profits for the fourth quarter and year because of the tax overhaul signed into law last week.

[..]

Two thirds of the $5 billion are due to changes in repatriation taxes, when funds are returned from overseas, according to Goldman. The remainder includes the ‘effects of the implementation of the territorial tax system and the remeasurement of U.S. deferred tax assets at lower enacted corporate tax rates.’

The new tax overhaul imposes a discounted one-time levy on money held overseas – 15.5 percent for earnings held in cash or other liquid assets and 8 percent for earnings held in harder-to-sell assets.

It would be a big one-time hit for Goldman, which had been expected to post fourth-quarter net income of $2.07 billion, according to banking analysts polled by FactSet. The bank reports earnings in mid-January.

Read the entire AP story.

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About the author

Joe Scudder

Joe Scudder

Joe Scudder is the "nom de plume" (or "nom de guerre") of a fifty-ish-year-old writer and stroke survivor. He lives in St Louis with his wife and still-at-home children. He has been a freelance writer and occasional political activist since the early nineties. He describes his politics as Tolkienesque.

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