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Goldman Sachs To Pay Effective Tax Rate of One Percent

It simply pays to be a corporate criminal:

Goldman Sachs’s Tax Rate Drops to 1%, or $14 Million

Dec. 16 (Bloomberg) -- 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.

The rate decline looks “a little extreme,? said Robert Willens, president and chief executive officer of tax and accounting advisory firm Robert Willens LLC.

“I was definitely taken aback,? Willens said. “Clearly they have taken steps to ensure that a lot of their income is earned in lower-tax jurisdictions.?

Nice business model they got there. If only everybody got free money from taxpayers, then there would be no recession.

Once again, we have no other options left for these animals except to:

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Comments

Great article Darren, why are giveaway corporate tax rates not subject to further public discourse?

In our journal, we have touched on another topic today - why is Goldman's subjected to such scrutiny, but Warren Buffett treated as a holier than though saint? After all, he invested in Goldman, must have known they were betting against the products they were selling, and that their calls on AIG - his competitor - might push them over the edge ....

http://www.economywatch.com/economy-business-and-finance-news/warren-buffet-goldman-sachs-what-did-he-know-when-did-he-know-it-11-02.html

One has to wonder if the $10 billion is subject to any gift taxes. Oh, another thing, the interest on the $10 Billion is probably a tax deduction so that also helps to reduce the taxes. Someone really thought this one out.

Did the radical muslums that killed all the Americans on Sept 11 2001 go to heaven or hell?

I feel that elected officials need to do more things like this for the people.

I feel that elected officials need to do more things like this for the people.