Rubio on Tax Bill: We 'Probably Went Too Far' in Helping Firms

Though he says he thinks Americans will still be all for the bill once they see their paychecks boosted
By Jenn Gidman,  Newser Staff
Posted Dec 30, 2017 6:07 AM CST
Goldman Sachs Says Tax Bill Will Cost It $5B
In this Oct. 16, 2014, file photo, a screen at a trading post on the floor of the New York Stock Exchange is juxtaposed with the Goldman Sachs booth.   (AP Photo/Richard Drew, File)

One of the facets of the GOP tax bill now signed into law is the tax break given to corporations, with the rate lowered from 35% to 21%. But Goldman Sachs says it won't capitalize as much as everyone thinks from the new bill, noting it will take a hit from a tax abroad that will slash profits this year by about $5 billion, per Bloomberg and Reuters. In a Friday filing, the company says a good portion of the hit it will take is tied to a repatriation tax that now requires companies with overseas income kept as cash to pay a 15.5% tax on it (other holdings face an 8% tax); the old law allowed firms to hold off on paying taxes until that income was brought back to the US. Still, this news didn't stop top execs at the company from being awarded about $100 million in stocks early due to the new bill, which is still expected to make Goldman Sachs money overall from the changes, the Hill notes.

Meanwhile, Sen. Marco Rubio seems to be having a bit of buyer's remorse after initially giving his thumbs-up to the bill, per the Hill. Rubio sat down with the News-Press on Friday and said if he "were king for a day," the bill wouldn't look the same, and that Republicans "probably went too far on [helping] corporations." "By and large, you're going to see a lot of these multinationals buy back shares to drive up the price," he said. "Some of them will be forced, because they're sitting on historic levels of cash, to pay out dividends to shareholders. That isn't going to create dramatic economic growth." Despite these reservations, Rubio still thinks there are many good things about the bill and that Americans will come around once they start seeing gains in their paychecks. The New Republic, however, says his concession "contradicts every GOP talking point about the tax bill." (More Goldman Sachs stories.)

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