The six biggest U.S. banks have saved $32 billion in taxes, including $18 billion last year, as a result of the 2017 Trump tax cuts, Yalman Onaran reports at Bloomberg News.
The average effective tax rate for JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley fell to 18% in 2019 from 20% the year before. “Because banks used to pay higher tax rates than many other industries, they were among the biggest beneficiaries,” Onaran writes.
The tax savings helped the banks post record profits of $120 billion last year. Onaran notes that the bank profits had never topped $100 billion before the tax cuts.