BP May Reduce Taxes by $9 Billion Dollars Because of Spill

Master Negotiator Barack Obama took BP out to the woodshed to teach them a thing or two! Pay up $20 Billion dollars, said Barack. And everyone applauded the Boy King* for his masterful** negotiating skills. Now this:

The Washington Post reports: BP to cut U.S. tax bill by $10 billion because of losses in gulf spill

BP said Tuesday that it plans to cut its U.S. tax bill by $9.9 billion, or about half the amount pledged to aid victims of the disaster, by deducting costs related to the oil spill.

So, the net total of revenue to the US government and the American people will be half what Obama expected because of his ignorance of the tax code???

A portion of that could be refunded from taxes BP paid in earlier years.

So, not only is Obama not getting the full twenty Bil, he's going to refund some of what was already paid? Where did we get this guy?

The company disclosed its intentions as part of its second-quarter earnings report, in which it said it would record a $32.2 billion charge to reflect the costs of the spill.

Under U.S. corporate tax law, companies can take credits on up to 35 percent of their losses.

The credit for BP could mean, however, that taxpayers will indirectly foot part of the bill for the $20 billion fund that BP established to compensate people and businesses harmed by the disaster.

On Tuesday, White House press secretary Robert Gibbs said U.S. taxpayers would not be responsible for the cost of the spill. When asked whether BP should be claiming a credit, Gibbs said, "I don't think anybody would prefer that they do that."

And I would prefer to date a supermodel, but I don't think that's going to happen any time soon either!

The Gang Who Couldn't Shoot Straight is alive and well at 1600 Pennsylvania Avenue!

PS: For all you folks who defended John Kerry for where he docked his yacht, I hope your defense will cover BP as well!


*"Boy King", not "boy", for all you race baiters out there.
**"masterful" - has nothing to do with "slaves" and or "masters", for all you race baiters out there.

H/T Mullings

Cross posted at Lady Cincinnatus, Left Coast Rebel, Say Anything