I Am So Annoyed

I am so annoyed :-)
We find stories about the most annoying things and bring them to you!
Previous Post: Blackwater wins Iraqis lose Next Post: Is this the United States?

When it rains it pours

Saturday, January 2nd, 2010   4:03 pm | Author: Jerry | Money |
Tags: , ,

It seems that no matter what Wall Street firms do they win.

 

First they are on the brink of disaster, or so we are told and the government bails them out with taxpayer money. No problem as long as the economy doesn’t collapse.

 

The economy doesn’t collapse although many individual investors lose much of their net worth. But not these firms.

 

The firms (Goldman Sachs, JP Morgan, etc.) wind up raking it from various fees, including fees charged to the government.

 

In fact the Wall Street firms did so well that they are handing out $200 billion in bonuses for 2009.

 

And to add insult to injury the compensation packages, including bonuses that the firms have given their employees will wind up saving the top three firms a fortune in taxes.

 

The NYT reports that “Many American banks already pay minuscule federal income taxes, because of various deductions and clever tax planning; the payout-related breaks will reduce their tax bills further in coming years… Altogether, the top three Wall Street banks — Goldman Sachs, JPMorgan Chase and Morgan Stanley — will gain nearly $20 billion in tax breaks based on their employee compensation this year.”

 

The total tax deductions for all Wall Street firms for 2009 will be approximately $80 billion. Goldman Sachs, which is technically taxed at a top corporate rate of 39 percent, will save about $9 billion in federal income taxes on the bonuses it pays out for 2009. In 2008 Goldman Sachs paid an effective tax rate of just 1%. It will probably be similar this year.

 

I would like to have an effective tax rate of 1%. May be those in Congress who are so worried about tax increases to support health care reform, climate change legislation, etc. should take a closer look at the loopholes that allow these firms to have such low tax rates.

 

1 Star2 Stars3 Stars4 Stars5 Stars6 Stars (2 votes, average: 5.50 out of 6)
Loading ... Loading ...


CHECK other recent posts here
or RETRIEVE posts by title using the Post Title dropdown list on the top right of this page

ADD your comments for this post below

Comments are closed.

Follow us on Twitter at Soannoyed     Subscribe to our RSS feed

Post by Title:


copyright © 2009 by Mirage · credits · terms and posting rules



















If you are searching for a music and lyrics site this is the one Favorite Lyric or Favorite Lyrics