The Tax Cuts And Jobs Act, Explained
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Goldman Sachs says a shift in how the tax code treats overseas profits might cost the bank $5 billion in the fourth quarter.
The new Republican tax reform law will likely take a bite out of big banks' bottom lines — at least at first.
Goldman Sachs told investors it's anticipating a $5 billion hit to its fourth-quarter earnings thanks to the tax bill. For reference, the bank's pre-tax earnings were just under $3 billion last quarter, so a $5 billion tax penalty could put the company in the red for the fourth quarter.
The cost mostly comes from the billions of dollars in profits Goldman has stored overseas. The U.S. wasn't previously taxing that money until it entered the country — but the Republican tax law now adds a 15 percent tax on cash and liquid assets held anywhere in the world.
Other banks have estimated they'll take substantial hits as well. Citigroup says it could pay as much as $20 billion from the bill.
But analysts are still bullish on tax reform, despite the initial cost. A steep cut in the corporate tax rate and an end to taxation of profits U.S. companies make overseas are expected to more than make up the difference.
The new restaurant appears to be nearing completion outside of a major city, but McDonald's has not said much about the new concept.
For now, only two versions of the truck are available for purchase: a dual-motor and tri-motor model, both of which are all-wheel drive.
The index found that companies with a history of promoting from within tended to do better with retaining employees.
The two schools will reportedly pay about $14 million to the Mountain West next year as part of the agreement.
Advocates say the change could serve as a road map for other states that have failed to expand the program.
Authorities are investigating the case as possible animal cruelty, a felony in Oklahoma that's punishable by up to five years in prison.