Taxpayers on the Hook for BP's Gulf Spill

[TomCADem]

Source: Fox Business

The oil hearings last week revealed that BP (BP: 42.76, -0.17, -0.40%) is moving to cut its tax bill by about $11.8 billion by writing off the costs of its devastating oil spill in the Gulf of Mexico as an ordinary business expense, a spill which wreaked havoc on the Gulf, killed wild life and damaged the local economy.

BP booked $11.8 billion in tax savings in its fourth quarter as it partly wrote off the costs for the clean-up, the $20 billion victim compensation fund, and legal expenses.

* * *
Taxpayers are on the hook for about 29% of BP's overall costs, says Senate Democrat Bill Nelson of Florida, who has introduced a bill that would shut down deductions for legal, clean-up and other costs associated with oil spills in U.S. territorial waters as "ordinary and necessary" business expenses.

The legislation would apply to most of BP's expenses, Nelson has said.





Read more: http://www.foxbusiness.com/markets/2011/05/16/taxpayers-hook/

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Notably, even Fox Business is noting this story, which occurs as Republicans insist that tax breaks to oil companies are off the table while insisting that they are the ones who are serious about deficit reduction.

[no_hypocrisy]

1. If it were planned that taxpayers pick up the tab, why wouldn't BP spend more money on the clean-up?

[Incitatus]

8. The taxpayers are not picking up the entire tab.

It is still going to cost BP billions.

[Dr Fate]

15. Taxpayers are being penalized for 29% of their bill. Taxpayers are responsible for 0% of the damage.

So I'd say BP is getting a sweet "deal" no matter how you slice it.

If you our I as indivuals had damaged a proportional amount of property, we would probably be bankrupt or in jail.

[valerief]

16. Congress is responsible for BP's negligience, because they didn't require precautions. nt

[Dr Fate]

18. So tax payers are responsible under a contrib. or comparative negligence theory?

I'm not sure if the tax payers are going to agree with that logic, assuming they are even made aware of it.

Congress giveth, congress can taketh away- there is no rule saying that tax payers have to foot the bill in situations where congress failed to regulate.

[Incitatus]

25. The engineers at BP are not stupid people.

They know more about drilling for oil than our politicians. It was their greed and negligence that allowed this mess to happen and if I recall correctly it was improperly sealing off the well that caused the problem. we ,the taxpayers, should not be responsible for a single cent of the cleanup.

[Incitatus]

24. I agree. They should not be able to write off any of the costs. nt

[xchrom]

2. recommend -- has anyone expressed 'surprise' yet? nt

[Angry Dragon]

3. Still not cleaned up

and very few people have been paid from their gusher fund
feinberg sucks

[LiberalLoner]

4. n/t K&R

[SHRED]

5. I am SHOCKED I tell ya

:sarcasm:

[SpiralHawk]

6. "Neener, neener, neener. Suckers. Smirk." - BP (R)

[defendandprotect]

7. The tab on BP/Gulf -- like Fukushima -- will go on into infinity -- !!!

Sadly, oil is a "national security" issue -- and will require the protection

of the government/Obama -- unless we end these wars!

No oil/no wars -- hmmm.....

[DonCoquixote]

9. But attack Mary landrieu

and people will accuse you of being a sexist or a shill.

[primavera]

10. They will?

Geez, I criticize Landrieu for being the Big Oil-fellating DINO that she is all the time.

[valerief]

17. Where? When? Who? nt

[Skink]

11. I don't expect a refund this year because the making work pay won't be there.

on the bright side I might be eligable for the eic which I have't recieved in years.

[truthisfreedom]

12. If this is criminal negligence, how can it be an ordinary write-off?

I can see how they're using some twisted logic to describe this as an ordinary business expense because the oil industry always has spills, but if it's defined as negligence, how can it be ordinary? Ordinary would be an accidental or unavoidable spill. This was certainly avoidable.

[lfairban]

22. I don't buy it either.

The $20B that has been promised for victim compensation can be easily surpassed by the fines for violation of the Clean Water Act. So they are saying the violation was, "ordinary and necessary".

:wtf:

[Dr Fate]

13. Pelosi, Reid and Obama Pledge 100% support for Nelson's bill (link included)

...

[Luciferous]

14. It's bullshit, but I can't say I'm surprised.

[Jefferson23]

19. How much more bullshit are Americans suppose to take? n/t

[Lint Head]

20. Big Oil is nothing more than lubricant so they can easily screw us without a kiss.

[sarcasmo]

21. No surprise here, taxpayers on the hook for just about everything.

[jtrockville]

23. Since taxpayers are incuring the risk, do we get to share the profits?

[cyberpj]

26. Some smart laywer should file a class action suit using just that logic. Oh. Wait...

Didn't our gov't just pass a law limiting class action suits?

Anyone surprised?