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Goldman Sachs Says Tax Reform Will Cost Them $5 Billion in Earnings

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(Via Zerodhedge)

Goldman Sachs warned on Friday that it expects a $5 billion hit to Q4 earnings as a result of tax reform signed by President Donald Trump on Dec. 22, approximately two-thirds of which is due to the repatriation tax.

As part of the GOP tax reform, a “repatriation tax” which allows companies to bring cash and assets held overseas to the U.S. by paying a one-time tax ranging from 8% on illiquid assets to 15.5% on cash and cash equivalents. It was introduced to encourage US companies to bring their vast overseas cash piles back home. In the 8-K, Goldman also said that the “remainder includes the effects of the implementation of the territorial tax system and the remeasurement of U.S. deferred tax assets at lower enacted corporate tax rates.”


The disclosure means the bank could post a steep loss for the quarter, albeit one driven by one time charges. Analysts expected Goldman’s Q4 earnings to hit $2.08 billion.

The repatriation tax “holiday” will allow Apple to bring back much if not all of its $252.3 billion foreign cash pile without a major tax hit – a long-standing company goal, while drugmaker Amgen last Friday also said it expects to incur tax expenses of $6 billion to $6.5 billion over time as it repatriates cash it has accumulated around the world because of the new law.

As the FT notes, Goldman is one of the first US companies to publicly estimate the impact of the new repatriation tax on its earnings, and adds that given that the US tax reform was led by Steven Mnuchin and Gary Cohn, the former Goldman executives who are now senior figures in the Trump administration, its impact on the influential investment bank was always going to be closely watched.

Ironically, in an analysis by none other than Goldman, the bank said that – drumroll – banks would be among the biggest beneficiaries from the sweeping changes to the US tax code that were signed into law by Mr Trump a few days before Christmas.

Several big banks — such as Bank of America and Barclays — have already warned that the tax changes will lead to a multibillion-dollar reduction in the accounting value of their deferred tax assets.

Goldman, which is due to report fourth-quarter results on January 17, said: “The impact of the tax legislation may differ from this estimate, possibly materially, due to, among other things, changes in interpretations and assumptions the firm has made, guidance that may be issued and actions the firm may take as a result of the tax legislation.”

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Crime

Robert Mueller’s Health Prevents Testimony on Epstein

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As of September 1, 2025, the decision to withdraw a subpoena for former Special Counsel Robert Mueller to testify before the House Oversight Committee has been met with a mixture of understanding and curiosity. Mueller, a respected figure who led the FBI from 2001 to 2013 and later investigated ties between the Trump campaign and Russia, has reportedly been diagnosed with Parkinson’s disease since the summer of 2021, according to his family’s statement. This health challenge, which has affected his speech and mobility in recent months, has understandably led to the committee’s decision to step back, allowing him the dignity to focus on his well-being. His decades of service to the nation, marked by integrity and dedication, deserve this respect, and many are hopeful for his comfort during this time.

The timing of this development, however, raises thoughtful questions among observers. Mueller was set to testify on September 2, 2025, as part of an investigation into the FBI’s handling of the Jeffrey Epstein case during his tenure, a topic that has stirred significant public interest and political scrutiny. The announcement of his health issues came just days before this scheduled appearance, following reports of his residence in a memory care facility and earlier concerns about his condition noted during his 2019 congressional testimony. While his family’s statement and the committee’s decision align with a genuine concern for his health, the coincidence with such a high-stakes inquiry prompts a cautious wonder about whether external pressures might have influenced the narrative, though no evidence suggests this outright.

This moment invites a balanced reflection on Mueller’s legacy and the ongoing pursuit of truth. His inability to testify, while a personal loss for those eager to hear his perspective, underscores the human side of public service, where age and health can impose limits. Yet, the abrupt nature of the withdrawal, paired with the gravity of the Epstein probe, leaves room for speculation about the full context. As the investigation continues with other witnesses, the focus remains on uncovering facts, with respect for Mueller’s past contributions tempered by a gentle skepticism about the timing, encouraging a thorough and transparent process moving forward.

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Politics

President Trump: Nothing Can Stop What’s Coming

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President Donald Trump’s recent post on Truth Social from August 31, 2025, serves as a powerful beacon for those seeking justice amid years of entrenched corruption in Washington. The imagery and message in the post highlight a leader poised to unveil long-hidden truths, pointing directly to scandals that have plagued the political landscape. From the shadowy dealings exposed through leaked emails to fabricated investigations designed to undermine his presidency, Trump’s communication resonates with a promise that the veil of deception is lifting. This moment underscores his unwavering commitment to draining the swamp, where figures like John Podesta and Hillary Clinton have been central to narratives of elite misconduct, including the controversial handling of sensitive communications that raised questions about national security and personal agendas.

At the heart of this corruption lies the Wikileaks revelations, which brought to light a web of influence peddling and favoritism within the Clinton campaign, implicating Podesta in emails that suggested cozy relationships with powerful interests. Coupled with the Anthony Weiner laptop discovery, which contained thousands of Clinton-related emails and prompted a last-minute FBI review just before the 2016 election, these events painted a picture of systemic favoritism and potential cover-ups. The Obama administration’s role in the so-called Russiagate saga further exemplifies this injustice, where intelligence agencies allegedly pushed a baseless narrative of collusion to derail Trump’s campaign and presidency. These manufactured controversies, including surveillance on Trump associates, set the stage for ongoing attacks, revealing a deep state apparatus willing to bend rules to protect its own.

The injustices extend to the relentless assaults on Trump himself, from the politically motivated raids on his properties like Mar-a-Lago to a barrage of charges aimed at silencing his voice and preventing his return to power. Yet, as Trump’s post implies, the tide is turning, with growing evidence and public awareness poised to expose these machinations fully. The corruption that allowed figures like Clinton to evade accountability while weaponizing institutions against opponents will soon face the light of day, empowering a movement toward transparency and reform. Through his leadership, alongside allies pushing for truth, the American people can anticipate a restoration of justice, where the full extent of these scandals finally comes into sharp focus, ensuring that no one remains above the law.

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Health

President Trump Calls for Covid-19 Vaccine Transparency, Sec. RFK Jr. Praises Move

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On September 1, 2025, President Donald Trump took to Truth Social to express concerns about the effectiveness of COVID-19 vaccines developed under his administration’s Operation Warp Speed. In his post, Trump highlighted “great numbers and results” from some pharmaceutical companies but demanded that they publicly release data to prove the vaccines’ success rates. He voiced frustration over the ongoing debate tearing apart the Centers for Disease Control and Prevention (CDC), urging transparency to resolve what he called a “MESS.” This statement reflects Trump’s evolving stance on the vaccines, which he once hailed as a major achievement, now aligning with growing skepticism within certain political circles.

The COVID-19 vaccines, rolled out in late 2020, have been credited by public health experts with saving millions of lives globally by reducing severe illness, hospitalizations, and deaths during the pandemic. However, they have also faced criticism for side effects in rare cases, waning efficacy against new variants, and questions about long-term data transparency from manufacturers. Trump’s demand for proof comes amid broader discussions on vaccine mandates and public trust, with some studies showing high effectiveness in initial trials but real-world challenges like breakthrough infections. This has fueled a polarized debate, where supporters emphasize the vaccines’ role in ending lockdowns, while detractors call for more accountability from drug companies.

Health and Human Services Secretary Robert F. Kennedy Jr., known for his vaccine-skeptical views, has been a key figure in recent policy shifts, drawing both praise for advocating scrutiny and criticism from former CDC officials who argue it endangers public health. Trump’s post appears to support Kennedy’s efforts to review vaccine data, potentially leading to changes in federal guidelines. While this push for evidence could enhance transparency, experts warn it might erode confidence in proven public health tools. As the administration navigates this issue, the focus remains on balancing accountability with scientific consensus to inform future health strategies.

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