Goldman Sachs, which has been headquartered in Manhattan for 136 years, is the third largest investment bank in the United States and its profits have risen as its tax bills have fallen.   

By its own account, 2004 was “the strongest performance in the firm’s history,”[1] with total net revenues of $20.55 billion[2] (up 28% from 2003) and total net earnings of $4.55 billion.[3] Earnings per share in 2004 (diluted) were $8.92 [4], the highest in Goldman’s history.

Already this year, Goldman Sachs has reported profits of $1.51 billion in the first quarter[5] and $865 million for the second quarter.[6] Its long-term debt is rated by Fitch at AA-, by Moody’s Investors Service at Aa3, and by Standard & Poors at A+.

Goldman’s overall income tax rate for 2004 was 31.8%, down from 32.4% for 2003 and 35% in 2002.  Goldman Sachs attributes this decline “to an increase in tax credits and a decrease in state and local taxes.”[7]  Federal tax credits in 2003 and 2002 were $138 million and $65 million.  Reported total federal and state tax benefits in 2003, 2002 and 2001 were $103 million, $119 million and $123 million.[8]