[Congressional Record Volume 156, Number 7 (Thursday, January 21, 2010)]
[House]
[Pages H306-H307]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ECONOMIC INJUSTICE IN AMERICA
(Ms. KAPTUR asked and was given permission to address the House for 1
minute.)
Ms. KAPTUR. Madam Speaker, here is something that will grab you. It
was reported this month that Goldman Sachs, the favored Wall Street
firm that has way too much special access in this city and that got
bailed out by the American people to the tune of billions and is now
handing those over in bonuses to their executives, has paid a net
effective tax rate of 1 percent. You heard me right--1 percent, Goldman
Sachs.
When most small businesses and corporations in this country are
paying at a 35 percent tax rate, Wall Street's elites still don't carry
their fair share. Imagine that secretaries, nurses, firefighters,
cleaning crews--the middle class of this country--pay at a higher rate
than Goldman Sachs.
Meanwhile, the chief executive officer of Goldman Sachs, Mr. Lloyd
Blankfein, harvested over $140 million in salary as head of that firm.
When he was asked, Well, isn't this a bit too much? His answer was that
he's doing God's work. I call that blasphemy.
This is fundamental economic injustice in America, and the American
people know it. They're voting their frustration. They expect Congress
to listen to them, not to continue to reward Wall Street's
overprivileged scions at their expense.
Bill Moyers Journal
(By Bill Moyers)
The ancient Romans had a proverb: ``Monday is like sea
water. The more you drink, the thirstier you become.'' That
adage finds particular meaning today on Wall Street, which
began this New Year riding a tidal wave of bonuses in a
surging ocean of greed.
Thanks to taxpayers like you who generously bailed banking
from the financial shipwreck it created for itself and for
us, by the end of 2009 the industry's compensation pool
reached nearly $200 billion. And despite windfall profits,
the banks will claim almost $80 billion in tax deductions.
And nearly $20 billion of those deductions will go to just
three institutions--Morgan Stanley, JP Morgan Chase, and
Goldman Sachs.
Ah, yes--Goldman Sachs, that paragon of profit and
probity--which bet big on the housing bubble and when it
popped--presto!--converted itself from an investment firm
into a bank so it could get your bailout money. Now consider
this: In 2008, Goldman Sachs paid an effective tax rate of
just one percent. I'm not making that up--one percent!--while
their CEO Lloyd Blankfein
[[Page H307]]
pulled down over $40 million. That's God's work, if you can
get it. And, believe me, Wall Street bankers know how to get
it.
____________________