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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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Politics

Rob Sand Must Be Audited Along with LGI

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Rob Sand won the Iowa governor’s race as the state’s auditor. That dual role demands immediate scrutiny of his own office and of LGI, the family business run by his wife, Christine Lauridsen Sand. Taxpayers have a right to know whether any public contracts, grants, or favorable treatment flowed between the auditor’s office and the company while he held statewide power. Iowa does not get a free pass on conflicts simply because the winner is a Democrat.

America First means accountability for officials who oversee public money. Sand built his career on auditing others. The same standard now applies to him and to LGI. Any overlap in finances, vendor relationships, or use of state resources must be examined by independent review before he takes the governor’s office. Working families in Iowa already face water-quality issues, budget pressures, and education concerns. They should not also wonder whether family business interests influenced decisions made in the auditor’s office.

An audit of Sand’s tenure and of LGI is the minimum required for confidence in the transition. If irregularities appear, they must be referred for further investigation. Sovereignty and basic fairness require that the next governor faces the same transparency he once claimed to enforce. Iowa voters deserve nothing less before he is sworn in.

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2028: America First Dark Horse Must Rise

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The 2026 midterms cleared the field. Democrats took Congress after voters punished high gas prices and the Iran war. Establishment heirs now carry that baggage. JD Vance’s odds slipped overnight. Marco Rubio remains tied to the same foreign-policy circle that produced the conflict. Neither can lead a clean America First recovery. The candidate must be anyone but Vance or Rubio.

That dark horse must run on sealed borders, an end to forever wars, energy independence, and trade that puts American workers first. Traditional values and biological reality in policy cannot be treated as optional. The midterms showed the cost of foreign entanglements and elite priorities. Working families want their government focused on home, not distant conflicts or cultural experiments. Only a figure free of prior establishment ties—and free of Vance or Rubio—can make that case without apology.

The next two years will decide whether the movement stays pure or dilutes into another round of managed decline. A dark horse who rejects globalist deals, defends sovereignty, and speaks plainly to the base can consolidate the realignment before 2028. The country does not need another caretaker from the current circle. It needs someone new who will finish what America First started.

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Democrats Gave Ground on Their Wackiest Issues to “Win”

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The midterm results show Democrats winning by dialing back the cultural extremes that defined their last several cycles. In Texas, James Talarico walked back earlier progressive positions on transgender issues to make himself viable in a state that rejected those policies for decades. Elsewhere, candidates who once embraced open borders, defund-the-police rhetoric, and identity-first messaging softened or ignored those planks and focused on costs, the Iran war, and gasoline prices. The public had already rejected the full agenda; the party simply stopped advertising the parts voters hated most.

America First voters never accepted boys in girls’ sports, men in women’s shelters, or sanctuary policies that prioritize non-citizens over citizens. Polling and prior elections already showed those positions as losers outside the coastal core. By muting them in red and purple districts while hammering inflation and foreign wars, Democrats could appeal to working-class Hispanics, independents, and some traditional Democrats who had shifted right. The strategy worked for one night because the economic pain was acute and the alternative was a party tied to high gas prices. It does not mean the underlying cultural preferences of the country changed.

Once in power, the same figures and progressive caucuses will push the old agenda again—Medicare for All, ending enforcement, and cultural mandates. The temporary ground they gave was tactical, not principled. Working Americans still want secure borders, biological reality in policy, and government that puts citizens first. The midterms proved the left cannot win by leading with its most extreme ideas. They also proved those ideas remain the party’s destination once the ballots are counted.

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