Results 1 to 3 of 3

Thread: An Added Cost of the BP Spill

  1. #1
    Olympic Champ RYou's Avatar
    Join Date
    Mar 2007
    Location
    New Jersey
    Posts
    8,376

    Default An Added Cost of the BP Spill

    I haven't been boycotting BP gas like I have for Exxon since i figured they need the cash to fund the spill. Not anymore. Time to force them to sell their assets.

    LONDON ? Oil giant BP said it plans to offset the entire cost of its Gulf of Mexico oil spill against its tax bill, reducing future contributions to U.S. tax coffers by almost $10 billion.

    BP took a pretax provision of $32.2 billion in its accounts for the period, for the cost of capping the well, cleaning up the spill, compensating victims and paying government fines.

    However, the net impact on BP's bottom line will only be $22 billion, with the company recording a $10 billion tax credit, most of which will be borne by the U.S. taxpayer, a spokesman said.
    Life's not the breaths you take, the breathing in and out that gets you through the day ain't what it's all about. It's the moments that take your breath away.

  2. #2
    World Champ ODH's Avatar
    Join Date
    Apr 2007
    Location
    New Hampshire
    Posts
    3,962

    Default Re: An Added Cost of the BP Spill

    If they incur $32 billions extra of expense their profits are $32 billion less and they get taxed on their profits. This quarter they are reporting a loss for the first time in 18 years becuase of the spill. How can they not end up paying less taxes?

    Saying the bill is going to be picked up by US taxpayes is deceptive...If a company has a bad year and loses money. They don't have any profits and therefore no taxes. So if I get a salary cut and end up paying less taxes, is the cost picked up by the US taxpayer?

  3. #3
    Olympic Champ RYou's Avatar
    Join Date
    Mar 2007
    Location
    New Jersey
    Posts
    8,376

    Default Re: An Added Cost of the BP Spill

    I didn't intend to infer the US taxpayers are picking up the cost of the spill. I didn't infer that BP should pay the taxes on the profits that would have been. The bottom line is the fact, that because of the spill and the cost to clean it up, the US Treasury is now shy $10,000,000,000, that would have been paid, if not for the spill.

    Now your argument to that fact should have been.....that $32 billion is being invested in mostly US resources that trickle down to US employee wages and business profits and ultimately, that $10 billion tax loss from BP will be paid by the wages from increased employment.

    But argument to that would be, that $32 billion investment is mostly reimbursement of lost wages and business income due to the shutdown of the coastal recreation areas and commercial fishing.
    Life's not the breaths you take, the breathing in and out that gets you through the day ain't what it's all about. It's the moments that take your breath away.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •