Goldman Sachs is adopting a controversial compensation scheme that will help partners at the investment bank lower their annual tax bill by hundreds of thousands of dollars each. But embracing that tax loophole, called carried interest, also could deprive the U.S. government of millions of dollars in revenue.
“This is yet another example of Wall Street executives exploiting loopholes in our tax code to pad their pockets rather than investing in workers and Main Street,” Senator Sherrod Brown, a Democrat from Ohio, said in a statement to CBS MoneyWatch. “Corporate greed is fundamental to the Wall Street business model — and workers aren’t going to get their fair share until we change it. It’s past time for Congress to put workers first by ensuring they share in the profits they create for their employers.”
According to the Wall Street Journal, the boost in Goldman bankers’ pay comes after senior employees