Wall Street ready to claim billions in tax breaks on bonus payments.

[democracy1st]

2009 closed with the stock market rebounding 61 percent from its March lows, and “Wall Street is ready to pat itself on the back for its huge gains with big bonuses,” potentially surpassing the record payouts of 2007. Analysts estimate that Wall Street’s 2009 bonus pool could total $200 billion — led by Goldman Sachs’ $23 billion — as the New York Times reported today, the return to big bonuses will also allow Wall Street banks to claim billions in tax breaks:

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.

Compensation related tax deductions will total about $80 billion across Wall Street, according to New York City tax analyst Robert Willens. In 2008, Goldman Sachs paid an effective tax rate of just 1 percent thanks to a variety of deductions and keeping profits offshore.


http://thinkprogress.org/2010/01/01/tax-break-bonus/

With Bigger Bonuses, Another Upside for Banks

http://www.nytimes.com/2010/01/01/business/01bonus.html?ref=business

Doubts on Regulation and Renewal Hang Over Wall St.

http://www.nytimes.com/2010/01/01/business/economy/01wall.html?ref=business

[aquart]

1. I feel frustrated.

I would like whatever those greedy thieves buy with their blood-soaked bonuses to kill them.

[Hello_Kitty]

2. Grr. eom

[mdmc]

3. End corporatism now

how frustrating..

[inna]

4. Oh, man. This is just obscene.

How do we put up with this crap??

:banghead:

[xchrom]

5. And there is virtually nothing we can

Do about it at this time.

[AzDar]

6. Wrong. Wrong. Wrong.

:grr:

[kentuck]

7. But the Democrats are blocked from doing anything about it.

They simply don't have the votes.

[laughingliberal]

9. or the will...nt

[rubberducky]

11. They don`t have the will, too much money involved. Money rules our lawmakers.

So, so sad, but so, so true. From sea, to shining sea money rules our lawmakers. We The People are totally backround noise. We may receive a few crumbs, but only what Big Money allows us to have. It seems inevitable that our system of government will collapse when We The People have been drained of every dime we have.

[Enrique]

8. Obama's gonna be pissed

he's gonna call them fat cats again!

[laughingliberal]

10. Yes, lol, that'll show 'em...nt

[yodoobo]

12. Everyone else has to pay tax on our income

yet they get tax deductions on their income.

This is obscene beyond belief!

[Wounded Bear]

13. I think you misunderstand the problem in the OP...

Payroll is a legitimate business expense that is tax deductible by the brokerages. The problem is the Reagan and Bush tax cuts. Rescind them and these obscene pay structures will be taxed at rates that actually make sense, like 50% or so. Also, the profits they are so proud of, and are largely based on government largess this year, would be taxed also.

I'm all for enacting a return to a transaction tax on Wall Street, too.

[dems_rightnow]

14. We've got the votes

To tax them as we wish, I think.

[yodoobo]

15. Why should it be a legitimate business expense?

These bonus payments are obscene.

They should clearly be taxed, just like our regular income is taxed.

[dems_rightnow]

16. They WILL be taxed

Taxed to the recipients.