Wednesday, July 28, 2010

$10 billion tax credit explains why BP hasn't paid into $20 billion fund

Oh, so that's why BP hasn't paid any money into the $20 billion slush fund for the Deepwater Horizon oil spill.

They weren't waiting for the legal eagles to scour and sign off on the documents.

They weren't waiting to finalize the sale of a few spare assets to Apache.

They were waiting for their income tax refund.

The oil giant said Tuesday that it is incurring a charge of $32.2 billion from the Deepwater Horizon disaster response, and as such, it is claiming a $9.9 billion taxation credit.

Asked in a conference call Tuesday about whether it has discussed the tax credit with President Barack Obama's administration, BP's outgoing chief executive, Tony Hayward said: "We have followed the IRS regulations as they're currently written."
...The Internal Revenue Service said it's not allowed under federal law to discuss individual taxpayer issues.

BP has a management team with one goal, and one goal only: Increase and protect shareholder value. Taking the tax break is just business.

But how does the Obama regime allow the company that spilled 100+ million gallons of oil into the gulf to play them like a hillbilly fiddle?

This means that at least half of the $20 billion slush fund--trotted around like a Trophy after the deal was announced on June 16--will be paid for by the US taxpayers.

Gimme some feedback in the comments.