Posted on 04/11/2016 7:31:39 PM PDT by Lorianne
Now that a judge has approved BP’s $20 billion settlement over the 2010 gulf oil spill, it is appropriate to look at the overall societal costs, as well as the bottom line to BP. And at tax time, people understandably think about their own taxes, too.
The government struck a $20 billion settlement with BP, which is a big number. Yet BP should be able to deduct the vast majority, a whopping $15.3 billion, on its U.S. tax return. That means American taxpayers are contributing quite a lot to this settlement, whether they know it or not.
(Excerpt) Read more at forbes.com ...
Well, with a roughly 33% corporate tax rate, that’s about $5 billion the US doesn’t collect in tax monies, but the US collected the whole in its economy.
Good!
Income taxes are generated based on profits.
The fact that BP is allowed a deduction for 15B in expenses does not necessarily generate a reduction of tax revenues.
BP could have used this for other deductible expenses.
We should pay for government, but they shouldn’t be entitled to loot companies, 33% is confiscatory, but we allow politicians to spend it wastefully.
Who gets the money from this? Does it go to the people who actually suffered from the spill, or does it pay for some senator’s bar tab at the local cathouse?
The money goes to Obama’s stash in Panama.
that is a misleading headline, as taxpayers do not subsidize $15.3 billion.
And I doubt if BP can actually write off the entire $15.3 billion anyway to reduce its taxes what with the lack of taxable revenue coming in due to low oil prices.
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