If BP qualifies for $10 billion cleanup tax break, should it get one?

[babsbunny]

http://www.csmonitor.com/USA/Politics/2010/0806/If-BP-qualifies-for-10-billion-cleanup-tax-break-should-it-get-one

By Patrik Jonsson, Staff writer / August 6, 2010

Atlanta

As the Gulf oil spill disaster wanes, attention has turned to the White House's ability to hold BP to its promise of "making the Gulf whole again."

Nearly two months after President Obama told the American people that BP would pay all cleanup costs, at least one US Senator is questioning whether the oil giant should receive a $9.9 billion tax break based on the $32 billion it expects to spend cleaning up after the Deepwater Horizon disaster.

The oil giant announced last week its intention to seek the tax break after agreeing to a deal with President Obama on June 16 to establish a $20 billion escrow account to pay financial damages related to the spill. So far, however, no money has been added to the fund amid ongoing negotiations between BP and the Department of Justice.

[Ozymanithrax]

1. If they can legally be kept from getting that tax break, it should be withheld. n/t

[gateley]

2. Let's see that $20 billion first, then we'll talk tax breaks. Sheesh. nt

[aquart]

3. No. They are entitled to nothing but spit in the eye.

[theoldman]

4. They will get the tax break if it meets the requirements of our tax laws.

You cannot deny a tax break just because you do not think a person or company does not deserve it. The law is the law.

[JDPriestly]

5. No. That is a ridiculous law.

[MercutioATC]

8. Why? Cleanup is a business expense.

If, however, there is criminal negligence (LEGALLY defined) involved, I don't know if they qualify for the tax break.

I'm no tax lawyer, but I don't think you can burn down your own warehouse and then claim a deduction for the loss of the value of the goods in that warehouse.

[JDPriestly]

14. I do not think that cleaning up a mess you made for whatever reason

should be a deductible business expense. Instead, companies should spend just a bit more to avoid making the mess in the first place. And the money they spend avoiding making the mess is what should be deductible. We would all be better off.

[Ricochet21]

15. I agree

I agree

[AlabamaLibrul]

20. And IANAL, but would you seriously suggest turning off alarms isn't negligent? n/t

[ibegurpard]

6. I thought the oil all evaporated

so they don't need it now right?

[thebestsas]

7. bp

NO, they made the spill the shude pay the pirice, and the tax break is onley for failing busines

[MercutioATC]

9. What??

"the tax break is onley for failing busines "??

What "tax break" are you talking about? Legal settlements are a valid business deduction.

[thebestsas]

11. bail out

[MercutioATC]

13. It's not bailout money, it's a normal IRS tax deduction.

...the same set of rules every company lives by.

[thebestsas]

18. oh

[anarch]

10. well, isn't all that lost revenue a tax write-off?

and what about the expense of all that Corexit? If anything, the American people probably owe money to BP. We should all be thanking them for their excellent and caring response to this unfortunate natural disaster. (Oil comes from nature after all)

[thebestsas]

12. Dude go to ufo page

[and-justice-for-all]

16. They should not get jack shit!!

That is like an award for fucking up.

[thebestsas]

19. yes

[Buns_of_Fire]

17. I took out the garbage yesterday. Does that count?

If so, my best estimates show that eighty thousand should cover it. You know my name and address. Thenk you.

[spanone]

21. no

[underpants]

22. Okay so a Dem Senator (Nelson-FL) catches this and now it is a PROBLEM for Obama?

The "at least one Senator" is mentioned in the first paragraph but you have to read way down to find out who it is and what he is actually saying.

[kittykitty]

23. "They want to give BP a tax break, I say no, no, no, no" (apologies to Amy Winehouse) nt

[Orsino]

24. Escrowed, until the spill is actualy cleaned up. n/t

[deaniac21]

25. BP will get whatever it wants. Haven't you heard? the Spill is all

gone.

[jmm]

26. BP needs to follow their own advice-

[thebestsas]

28. Yes

you have seen the pic to.

[ThomThom]

27. Don't you have to pay taxes to get a tax break?

or are we just giving them 10 billion dollars if so we know what team he is on.