The chart below shows the average compensation per employee at Goldman Sachs (NYSE:GS). In the last year, average compensation at GS fell 15% to $367K. This is only the second time in eight years where average compensation per Goldman employee dropped below $400K, and since their peak compensation year in 2007, the average Goldman employee has seen a 45% decline in their average compensation.
While most Americans will not shed any tears over people making $367K per year, state tax collectors are. States like New York and New Jersey tax their highest earners at rates of about 9%, while Connecticut has a top rate of close to 7%. Ultimately, that translates into declines of hundreds of million in tax revenues for Goldman employees alone.