In an attempt to play Main Street against Wall Street, Rachel Maddow mocked and criticized the rate at which Goldman Sachs was taxed this year.
The MSNBC host of "The Rachel Maddow Show" lamented that the investment bank Goldman Sachs, which reported a $2.12 billion dollar loss for the fourth quarter ending Nov. 28, paid only 1 percent in taxes for the entire year during her Dec. 18 show.
"Five pages into Goldman's earnings report this week, Bloomberg News noticed Goldman's very subtle announcement that the firm's effective tax rate this year was 1 percent," Maddow said. "One percent - they paid 1 percent in taxes. Even though they were down this last quarter, they made $2.3 billion in profit this year."
As Maddow pointed out, the drop in the rate comes at the same time the company was asking for a portion of the controversial TARP bailout funds by the Treasury Department, passed by Congress earlier this year. With Maddow's logic, Goldman Sachs should have paid more in taxes so the government could loan its own money back instead of ordinary taxpayers'.
Maddow also accused Goldman Sachs of moving money offshore to avoid higher taxes. She read a passage from Goldman Sachs (NYSE:GS) earnings report that noted the change in the rate - from 34.1 percent in 2007 to 1 percent in 2008, which cited the reason as "the decreases in the effective income tax rate were primarily due to ... changes in geographic earnings mix."
But Maddow left out a few words in her citation. The actual report read, "The decreases in the effective income tax rate were primarily due to an increase in permanent benefits as a percentage of lower earnings and changes in geographic earnings mix."
"Hmm. You used to pay 34 percent in taxes now you pay 1 percent in taxes because of changes in your geographic earnings mix meaning you moved all your money offshore to places with no taxes?"
Maddow then played the class warfare card - asking her viewers to compare how much Goldman Sachs paid in taxes to what they pay in taxes.
"Keep this in mind the next time you look at your paycheck and you look at all the taxes you're paying - Goldman Sachs pays 1 percent taxes now and they're the ones getting bailed out with the money that you pay in taxes. Do you pay more than 1 percent?"
According to the Bloomberg News story by Christine Harper cited by Maddow, it was reported Goldman paid $14 million in taxes for 2008. Perhaps she could have asked her viewers how many paid more than $14 million in taxes also.
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we pay 2.5% in taxes.
December 18, 2008 - 12:43 ET by katainkentby the way... how many cents on the dollar is that? And would she be happier if they were going under and laying off?
"part of what I'm hoping to introduce as the next president is a new ethic of [government enforced] responsibility" - B. Obama
tax rate
December 18, 2008 - 12:49 ET by richb313There is a difference between the tax rate and the taxes you pay. The tax rate for Goldman-Sachs still remains the same. The tax you pay is the tax rate minus deductions. By giving an incomplete story the have lied by ommision (one of the worst lies). I wish there was a way to take these idiots to task, but alas it is easy to mislead the masses. The Nazis came to power and ginned up support the same way. The liberals and MSM always complain that it is conservatives who engage in class warfare while the true culprits get away with it time and time again. I can only hope that the Amaerican people will wake up one day and understand exactly how they have been lied to for so many years, but I am not holding my breath.
Shhhh, I am sure she
December 18, 2008 - 14:00 ET by kgShhhh, I am sure she doesn't know the difference. I am surprised she didn't mention the bonuses Sachs has given out these last few years. They made as much as the oil companies and weren't threatened with a windfall profit tax.
"Forget change, I want improvement!"
Her real name is Rachel
December 18, 2008 - 12:53 ET by AcrosHer real name is Rachel Madcow
mooo...
December 18, 2008 - 12:55 ET by katainkentso juvenille I know.
"part of what I'm hoping to introduce as the next president is a new ethic of [government enforced] responsibility" - B. Obama
The times of absurd normality
December 18, 2008 - 12:58 ET by legacyrepublicanWe are in interesting times.
I foresee in this logic here "the times of absurd normality" will define next year.
Though businesses will go literally bankrupt, the media will treat things as absurdly normal.
They can't let an economic downturn ruin their playbook. The rich are getting richer. The poor are getting poorer. The rich don't pay their fair share of taxes.With out this play book, they have no story line to report.
So, they will pretend that everything is as it was and play the old game and ignore the current realities.
A One Per Cent tax rate for a company barely making it is the evil rich at it again.
Bottom line, or the byline , the oxyMorons have taken over!
This is why the people see
December 18, 2008 - 13:02 ET by jay_1975This is why the people see the Republicans as the party of the business interests over the people. Goldman paid $14 mil in taxes out of $2.3 bil in profits equals less than 1% paid in taxes. Perception is killing the party and no one seems to be out fighting to change that perception. If something isn't done soon, 2010 could look like 2008 again.
Who is that guy
December 18, 2008 - 13:19 ET by Pha PhaAnd who names a boy Rachel?
Maddow should be fired for
December 18, 2008 - 14:16 ET by motherbeltMaddow should be fired for her duplicity.
But this is MSNBC, after all....
Madcow, a stupid liberal,
December 18, 2008 - 18:51 ET by jdhawkMadcow, a stupid liberal, but I repeat myself, didn't bother to tell her viewer(s) that every company in America enjoys the same "benefit" when they lose money instead of making money. That is, companies pay taxes on income not on revenue. If you make no income, you pay no taxes.
Again, NB, Madcow knows this. She is not a journalist. She is propagandist. She is obviously trying to drive a wedge between people that don't know any better (her audience) and corporations.
Here is a statistic that will never be uttered from Madcow's mouth. Exxon paid taxes in the amount of $50 billion dollars last quarter. That is more than the bottom 50% of American taxpayers paid. That is in just one quarter.
What? No ticker tape parade for Exxon? No instead, they get grilled on Capitol Hill for manipulating the price of oil. I guess that is what they are doing now with the price of oil at a 4 1/2 year low.
Another thing that will never be uttered from Madcow is calling for Justice Department investigations of those criminal futures traders that are bidding down the price of oil. Evil speculators. How dare them!
I like the little sign she
December 19, 2008 - 06:13 ET by thebutlerdiditI like the little sign she has to the right of her head, "Ms. Information." Shouldn't it say "Misinformation?" And I know it is bad, but when I listen to her voice, I really, really think she is a guy. It is just too weird the way she changes her pitch continuously.