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corysub -> RE: Goldman Sachs cuts taxes to one percent by moving profits offshore (12/18/2008 8:07:51 PM)
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quote:
ORIGINAL: pahunkboy
Bank takes $10 billion bailout, then cuts tax rate 33 percentSay you got a ten billion dollar loan to shore up your finances, and you paid your employees $10.9 billion, and you raked in $2.3 billion for the year.
What would you say you owed in taxes? One percent?
That's what you'd pay if you were Goldman Sachs, Inc. The high-flying brokerage -- and former home of Bush Treasury Secretary Henry Paulson -- has announced it's paying just $14 million in taxes this year.
http://rawstory.com/news/2008/Goldman_Sachs_tax_rate_drops_to_1218.html /snip
Im sure the outfit is upstanding and very "American".
Goldman Sachs = agent for the Brittish empire
Last year, their tax bill was $6 billion, or 34.1 percent. That represents a year-over-year drop of 33.1 percent.
Huh!!? Where did you get your degree in accounting,..from one of those "match book cover" send in the money and get a diploma schools?
I'm no fan of Goldman Sachs but would you expect over 30,000 employees to work for free? Total compensation paid was about 46% lower in 2008 versus 2007 reflecting the lower net revenues for the year.
The company "lost" $4.97 a share in the fourth quarter versus a "profit" of over $7.00 a share in the same 2007 period. Of the remainder of approximately $2 billion, the geographic mix of income was skewed geographically away from the losses in the United States and resulted in the seemingly low 1% tax rate. The miserable performance of the shares reflects the "poor" earnings perfomance. Quoting the $2 billion profit for the year is silly when you consider the size of this company.
The "1%" tax rate paid in 2008 reflects foreign income and tax credits bulking large to total net earnings, and was not a cut of 33% as you describe. The tax rate was 34.1% in 2007 (fairly normal for a company their size) and dropped to a 1% rate this year, actualy a decline of around 97%! What you should have said was that the tax rate dropped 33 POINTS..not 33 PERCENT. A 33 percent drop in the tax rate implies an actual tax rate in the low 20's%, not the 1% reported. Simple math guy...and would make a better case for the fallacious commentary presented.
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