Goldman Sachs To Pay 1% Tax Rate
Posted in Main Blog (All Posts) on December 17th, 2008 12:52 pm by HL
Goldman Sachs To Pay 1% Tax Rate
And no, it’s not primarily because of low profits, it’s partly because of a big tax credit, and partly because of shifting revenue to offshore domiciles. So on the one hand, they’re taking 10 billion from the taxpayer, on the other hand they’re stiffing the government.
two bits four bits
And no, it’s not primarily because of low profits, it’s partly because of a big tax credit, and partly because of shifting revenue to offshore domiciles. So on the one hand, they’re taking 10 billion from the taxpayer, on the other hand they’re stiffing the government. Last year they paid 6 billion in taxes worldwide, this year they’ll pay 14 million. You, the taxpayer, will make up the shortfall, one way or the other.
This sort of tax shifting has to end. The simplest way to do it is to say that no matter where you pay taxes, you make up the difference in the States. So if the rate is 10% somewhere else, and 30% in the US, you pay the 20% difference to the States. Make it so that folks can’t set up separate companies to avoid taxes, and make some treaties with other countries. Race to the bottom economic competition needs to end—it isn’t healthy when southern states give huge tax breaks to lure companies and it isn’t healthy when it’s countries competing with each other to see how low they can go, and to heck with providing services for their citizens.
Another possibility is to tax all transfers of money into the US. You may be able to pay lower taxes overseas, but if you try and bring the money into the country, you get charged the tax you should have paid in the first place.
Either way, it needs to be dealt with. As for Goldman Sachs, this sort of tax dodging looks about as good as everything else they’ve done since their ex-CEO, Hank Paulson, took over at Treasury.
