Jump to content
Sign in to follow this  
mendeleev

Will BP enjoy a long tax holiday?

3 posts in this topic

Recommended Posts

Filed: K-3 Visa Country: Russia
Timeline

This information is gleaned from a front page article of Tuesday's (13 July) Financial Times.

BP may not need to pay Uncle Sam any taxes for a few years, because of the oil spill. If BP manages to seal the hemorrhage by August, Financial Times reckons that BPs total spending in the gulf could be about $30 billion. About $10 billion would represent cleanup costs and $20 billion compensation suffered by fishing, tourism, and other damaged industries.

BP believes they can deduct these costs from taxable earnings. With a 30% tax rate on profits -- a good estimate globally -- BP would have roughly $10 billion it could deduct.

BP paid $8.4 billion globally in taxes last year. Of this, 930 million pounds went to the British treasury and it is thought that the Feds got a similar amount: maybe $1.5 billion.

With $10 billion to deduct, if BP plays it smart, and Uncle Sam went along, maybe they won't have to pay taxes for four years and, in effect, the US and UK taxpayers will subsidize BP's recklessness.

BP's share price is going up. With a 4-year tax holiday in sight, there's no reason why it shouldn't.

I imagine there are folks here who think these sort of tax breaks are the way things should be.


5-15-2002 Met, by chance, while I traveled on business

3-15-2005 I-129F
9-18-2005 Visa in hand
11-23-2005 She arrives in USA
1-18-2006 She returns to Russia, engaged but not married

11-10-2006 We got married!

2-12-2007 I-130 sent by Express mail to NSC
2-26-2007 I-129F sent by Express mail to Chicago lock box
6-25-2007 Both NOA2s in hand; notice date 6-15-2007
9-17-2007 K3 visa in hand
11-12-2007 POE Atlanta

8-14-2008 AOS packet sent
9-13-2008 biometrics
1-30-2009 AOS interview
2-12-2009 10-yr Green Card arrives in mail

2-11-2014 US Citizenship ceremony

Share this post


Link to post
Share on other sites
Filed: Citizen (apr) Country: Ukraine
Timeline

I believe NO business should pay ANY tax...EVER, for ANY reason.

Businesses pass their taxes on to either employees, shareholders or customers. Businesses do not PAY tax (no matter what you may imagine) businesses COLLECT taxes and pass them on to the government. Put a tax on cigarettes (oh, they have already done that) and see who pays it. Put a tax on soda...they tried that too, and see who pays it. Put a tax on anything and it will passsed from the business to the consumer, employee or shareholder in increased prices or reduced dividends or pay, and collected from individuals. Individuals pay tax, businesses do not.

The problem is not that BP will get a tax credit, the problem is that other oil companies will NOT. The government collects about 45 cents per gallon on gasoline, more "profit" than the oil company makes, but that is OK by you? (And that does not include state tax) There very well could be more than $1 per gallon YOU are paying in tax (depending on your state) Would you be happy if gasoline went down in price $1 per gallon?

Put another way...if our government did not FORCE BP to collect tax from US to pay to the government, we would have lower gas prices and YOU would not be whining that BP was getting a tax cut AND BP would have to pay for the oil spill "out of their own pocket"


VERMONT! I Reject Your Reality...and Substitute My Own!

Gary And Alla

Share this post


Link to post
Share on other sites
 

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  
- Back to Top -


Important Disclaimer: Please read carefully the Visajourney.com Terms of Service. If you do not agree to the Terms of Service you should not access or view any page (including this page) on VisaJourney.com. Answers and comments provided on Visajourney.com Forums are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Visajourney.com does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. VisaJourney.com does not condone immigration fraud in any way, shape or manner. VisaJourney.com recommends that if any member or user knows directly of someone involved in fraudulent or illegal activity, that they report such activity directly to the Department of Homeland Security, Immigration and Customs Enforcement. You can contact ICE via email at Immigration.Reply@dhs.gov or you can telephone ICE at 1-866-347-2423. All reported threads/posts containing reference to immigration fraud or illegal activities will be removed from this board. If you feel that you have found inappropriate content, please let us know by contacting us here with a url link to that content. Thank you.
×
×
  • Create New...