Mercury Rising 鳯女

Politics, life, and other things that matter

US Taxpayers, Not UK Grannies, Paid For BP Cleanup

Posted by Phoenix Woman on May 30, 2012

Remember how British Petroleum and their Tory, Republican and other corporatist allies whined and whined and whined that Poor Widdle British Petroleum just couldn’t pay to clean up its own big-ass Gulf of Mexico oil spill because they’d have to starve all the grannies in the UK to do it?

Guess what? It was a big fat lie.

Not only do British pension plans have but minimal exposure to BP stock (1.5% at most), but guess what? BP stuck US taxpayers with the bulk of the cleanup bill:

It has become apparent that BP deducted essentially all of the costs of cleaning up the Deepwater Horizon spill from their taxes in 2010. According to an article in The Guardian, BP had paid $14 billion total in cleanup costs associated with the spill as of January 2012 (http://www.guardian.co.uk/business/2012/jan/03/bp-seeks-spill-costs-halliburton), yet, according to a recent Fox Article in 2010 ALONE they deducted $13 billion from their federal income tax as ‘business costs’ (http://www.foxnews.com/politics/2011/04/22/bp-cut-tax-13b-losses-spill/)

As the author notes, the numbers come from different sources and thus vary somewhat, but it’s still got the stench of “massive con” all over it:

They came in and tried to exploit hard-to-reach resources, and their own ineptitude caused the failure of their project and directly resulted in negative externalities for the American people that are truly incomprehensible in scale. And then WE PAID FOR THE CLEANUP.

Seriously, people. You should be pissed.

I am, buddy. I am.

(Crossposted at MyFDL.)

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3 Responses to “US Taxpayers, Not UK Grannies, Paid For BP Cleanup”

  1. Charles II said

    To be fair, they would have deducted the costs from their profits, not from their taxes. Since they were probably paying taxes at a 30% rate (though of course, perhaps much lower), that means we only ::urk:: paid a third the cost of the cleanup. FOX says:

    The company ended up cutting its total tax bill significantly by claiming nearly $41 billion in losses due to the spill. Before the spill was considered, the company was posting a $36.1 billion profit and paying $11.4 billion in total taxes, according to the report. After the $41 billion Gulf disaster was considered, BP recorded a $4.8 billion net loss.

    It sucks big time, but only one-third the big-time it would have been had they deducted it from their taxes.

    • jo6pac said

      Yes, it’s back to business as usual for bp and once again know one goes to Jail. The people in the Gulf are left with a mess and health care problems for who know how long. It’s not that I expected it to turn out any different.

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