Goldman Sachs’s Tax Rate Drops to 1%

Student Researcher: Aimee Drew

Evaluator: Robert Girling

In December, the bank holding company, Goldman Sachs reported its first quarterly loss since going public and also lowered its income tax rate. On the heels of this announcement, Goldman Sachs issued a statement confirming that its tax rate was dropping from 34.1 percent to 1 percent. The New York based company cited “changes in geographic earnings mix” as the reason behind the decrease.  According to U.S. Representative, Lloyd Doggett, the shifting of income to countries with lower taxes is cause for concern.  “The problem is larger than Goldman Sachs,” Doggett said, “With the right hand out begging for bailout money, the left is hiding it offshore.”

“Goldman Sachs’s Tax Rate Drops to 1% or $14 Million” Christine Harper, Bloomberg, 12/16/08

http://www.bloomberg.com/apps/news?pid=20601087&sid=aznONFlyupOI7refer=home#