what happened to the photo’s and videos of oil washing up and the ducks etc having oil on them?
Why did the Govt and BP do a blackout and a no go zone?
*WILL OBAMA EVER GO TO CHURCH ON A SUNDAY OR WILL HE LET THE MEDIA/THE LEFT BE FOOLED FOR EVER*
I think his holy day is Friday....
BP Escrow impact on US Treasury?
It seems like a miracle that our beloved leader was able to convince BP to establish a $20 billion slush fund (oops, escrow) to compensate those hurt by the ongoing oil plume in the Gulf of Mexico . After all, he had no constitutional power to force them to do so; so he had to resort to Chicago-style negotiating.
But, let us take a closer look at the effect on BP’s finances:
1. BP will establish a $20 billion fund, but will pay only $7 billion into it during 2010.
2. BP is a British corporation, but has a very large operating entity in the US .
3. By Generally Accepted Accounting Principles (GAP), BP must book the entire $20 billion expense in the year accrued. Therefore, they will book a $20 billion expense in 2010, reducing their US tax liability by $7 billion.
4. Our dear leader also convinced this massive corporation to show their concern for the “small people” by withholding dividends to their shareholders for the last 3 quarters of 2010. This reduces their outward cash flow by about $7.5 billion, including approximately 40% of that amount to US citizens. Assuming that the Bush tax cuts will survive through 2010, the US Treasury will lose another $450 million in taxes on that amount. We won’t even discuss the effect on the US economy.
Let us put the results into a table easily understood by the small people:
• BP Cash Flow:
O Escrow funding ($7 billion)
o Dividend saving $7.5 billion
o Tax savings $7 billion
o Net favorable cash flow : $7.5 billion
• US Treasury Tax Receipts:
o BP Corporate income tax ($7.5 billion)
o BP Shareholders ($0.45 billion)
o Net unfavorable tax receipts ($7.95 billion)
Question: Did the US Taxpayers just fund the first 1/3 of the BP Escrow commitment?