Dem proposes blocking tax deduction bailout for BP

[Donnachaidh]

http://www.dailykos.com/storyonly/2010/7/30/888999/-Dem-proposes-blocking-tax-deduction-bailout-for-BP?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+dailykos%2Findex+%28Daily+Kos%29&utm_content=Twitter

It was not exactly a surprise to learn that BP believes thinks it is entitled to a $9.9 billion tax benefit, including refunds on taxes paid in previous years, to pay for the cost of cleaning up its own oil spill.

That's right: despite earning $80 billion over the past four years, despite saying that it will pay for the expense of recovery in the Gulf, BP now wants a $10 billion bailout from taxpayers.

Makes you want to scream out loud, eh? Of all companies in the world that do not deserve a bailout, BP might just be the leading example. (Though, to be fair, Goldman does give it stiff competition.)

It's a horrible idea, and Rep. Eliot Engel (D-NY) agrees. Today he announced plans to block the taxpayer bailout of BP, promising to introduce legislation that would block BP taking advantage of the deduction and any associated tax credits or refunds.

Aside from being the right thing, Engel's idea is political gold: imagine the difficult position it would put Republicans in. Do they support Democratic efforts to make sure BP doesn't profit from its oil spill, or do they believe in bailouts for BP? If Joe Barton's apology is any guide, the results could be a political disaster for the GOP...and another big win for Democrats.

[FiveGoodMen]

1. Go, Eliot!

:fistbump:

[DrDan]

2. lawyers will make a ton arguing this for the next decade or so

[dipsydoodle]

3. Probably just as well if it did last a decade.

If it was shorter than a year BP would simply deduct it from the escrow total same as they would any punitive damages awarded against them. They would still expect the refunds from earlier years in the meanwhile.