Tax overhaul costs Goldman Sachs $5 billion

Goldman Sachs says it's about to take a big hit from the massive overhaul to the U.S. tax code.The investment ...

Posted: Dec 30, 2017 3:58 PM
Updated: Dec 30, 2017 3:58 PM

Goldman Sachs says it's about to take a big hit from the massive overhaul to the U.S. tax code.

The investment bank forecast that changes to American tax rules will knock $5 billion off its profit in the final quarter of 2017.

Goldman said the majority of the $5 billion hit will come from a "repatriation tax," which is a new one-time tax on the cash it hold overseas.

Tax experts expect that many other big U.S. companies will announce similar one-off tax charges on their foreign cash stash in the coming weeks. Apple, in particular, is known for holding a huge amount of cash abroad.

"They should all come out with similar statements," said Ryan Dudley, the head of international tax services at Friedman LLP.

The new rules outline that U.S. companies will have to pay a tax of between 8% and 15.5% on all their foreign-held cash After that one-time tax is paid, companies will be able to bring foreign-held money back to the U.S. without paying tax.

Goldman declined to comment on whether it would be bringing back money from overseas after paying this charge.

The banking giant said it will also have to write down the value of tax credits it had been saving up. Goldman plans to use the credits in the future to lower its tax bill, but they'll be worth much less when the new rules take effect next year.

President Trump signed the tax reform bill into law last week with the promise that lower taxes would boost business profits.

Longer term, a lower U.S. corporate tax rate -- down to 21% from 35% -- is expected to be positive for business.

Many big international companies have said the changes will benefit them over the long term, but warned that the tax changes will mean billions of dollars in one-off losses.

Major European banks Barclays, Credit Suisse and UBS, plus oil giant Shell, have indicated the new tax rules could cost them between $1 billion to $3 billion each in one-off charges. This is mainly related to rejiggering their accounting of tax credits.

West Lafayette
Clear
76° wxIcon
Hi: 88° Lo: 63°
Feels Like: 76°
Kokomo
Clear
74° wxIcon
Hi: 85° Lo: 63°
Feels Like: 74°
Rensselaer
Clear
72° wxIcon
Hi: 85° Lo: 61°
Feels Like: 72°
Fowler
Clear
72° wxIcon
Hi: 85° Lo: 62°
Feels Like: 72°
Williamsport
Clear
73° wxIcon
Hi: 87° Lo: 61°
Feels Like: 73°
Crawfordsville
Clear
74° wxIcon
Hi: 87° Lo: 63°
Feels Like: 74°
Frankfort
Overcast
76° wxIcon
Hi: 87° Lo: 64°
Feels Like: 78°
Delphi
Clear
73° wxIcon
Hi: 86° Lo: 62°
Feels Like: 73°
Monticello
Clear
73° wxIcon
Hi: 85° Lo: 61°
Feels Like: 73°
Logansport
Clear
73° wxIcon
Hi: 85° Lo: 62°
Feels Like: 73°
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 52037

Reported Deaths: 2762
CountyConfirmedDeaths
Marion12111693
Lake5677249
Elkhart366260
Allen2971134
St. Joseph221169
Hamilton1735101
Cass16489
Hendricks1470100
Johnson1351118
Porter84938
Vanderburgh8016
Tippecanoe7859
Clark71944
Madison68164
LaPorte62928
Howard61058
Bartholomew60545
Kosciusko5844
Marshall57011
Noble52428
Boone49244
LaGrange48710
Delaware48152
Jackson4793
Hancock47436
Shelby46025
Floyd41844
Monroe36128
Morgan34431
Grant32226
Dubois3196
Henry30318
Montgomery29720
Clinton2903
White27810
Dearborn27123
Warrick26829
Vigo2618
Decatur25732
Lawrence25325
Harrison21822
Greene19932
Miami1942
Jennings17912
Putnam1748
DeKalb1694
Scott1659
Wayne1596
Daviess15117
Perry15110
Steuben1402
Orange13823
Jasper1362
Ripley1357
Franklin1288
Gibson1282
Wabash1193
Carroll1142
Starke1093
Fayette1087
Whitley1086
Newton10110
Huntington942
Jefferson872
Wells831
Randolph804
Fulton761
Jay720
Knox710
Washington681
Pulaski661
Clay645
Posey640
Rush623
Spencer591
Owen531
Benton510
Sullivan511
Adams491
Brown441
Blackford402
Fountain362
Crawford330
Tipton331
Switzerland320
Parke280
Martin260
Ohio230
Vermillion200
Warren151
Union140
Pike120
Unassigned0193

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events