Friday, April 22, 2011

Destroying our gulf shouldn't be a tax write-off.

Destroying our gulf shouldn't be a tax write-off. Tell BP to pay their fair share.

UPDATE: Wednesday afternoon, we learned that BP's tax break will be even bigger than was first reported - an outrageous $13 billion!1 A BP spokesman wouldn't say if the company is paying any U.S. taxes at all this year. It could even be getting a refund. Please take action to hold BP accountable.
One year ago, on April 20, 2010, BP's oil began to pour into the Gulf of Mexico. It did not stop for 87 days.
Today, economic and environmental devastation remain. Thousands of Gulf Coast residents cope with massive health problems from oil and toxic dispersants.
BP, on the other hand, just scored a nearly $10 billion dollar credit on their 2010 federal tax return, by writing off their "losses" incurred from the tragedy.2
That's the equivalent of the entire annual budget of the EPA, whose funding was just slashed in the continuing resolution. It is almost one third of all the cuts in the continuing resolution.
Americans shouldn't have to endure massive budget cuts because BP took a $10 billion tax deduction for destroying our gulf. Tell BP: Amend your tax return and pay your fair share.
Responding to BP's monumental catastrophe cost a massive amount of resources from local, state and federal governments. Now, BP is dealing another massive blow to our nation's tax revenue.
The $10 billion savings comes after BP wrote-off the $32.2 billion it set aside to cover clean-up costs, fines, and a $20 billion victim compensation fund (which has been notoriously slow and stingy in responding to claims, paying out less than 4 billion so far.3)
But there is an excellent precedent that says BP did not have to deduct these costs for tax advantages. Last year, Goldman Sachs waived a tax deduction it could have claimed as a result of paying $500 million in fines to the Securities and Exchange Commission for giving bad information to mortgage investors.4
BP has cost our nation enough already. It shouldn't be rewarding itself with huge tax savings.
BP's $10 billion tax credit slashes its liability by one third - at every US taxpayer's expense. Tell BP to amend their tax return and pay their fair share.
Over the weekend, hundreds of Gulf Coast residents attended the Powershift conference in Washington, DC and told stories of oil still remaining on beaches, of its smell still permeating the air, of legions of dead dolphin, turtles and fish, of neighbors who are sick or jobless. They said that BP hasn't done nearly enough to make it right.
Meanwhile in Washington, BP just restarted political contributions5 to the Republicans who continue to push for expanded offshore drilling, oppose lifting oil spill liability caps,6 and do everything in their power to keep our nation addicted to dirty crude, as millions of Americans literally drain their paychecks into their gas tanks every day.
To take our nation off of dirty, dangerous, expensive fossil fuels, we must force polluters to pay for the damage they do.
One year ago, BP brought us what would become the worst environmental disaster in our nation's history. We don't owe BP a tax-credit. BP owes us our gulf back. The least it could do is pay its fair share.
Please sign the petition now.
1. "BP To Cut Tax Bill By $13B But Won't Say What It's Paying IRS For 2010," Talking Points Memo, April 20, 2011
2. "BP Scores $10B Tax Credit by Offsetting Cash," CBS News, July 27, 2010
3. "Gulf-Spill Fund Pays $3.8 Billion; Total May Be 'Higher'," Bloomberg, April 18, 2011
4. "Goldman Waives Tax Deduction on SEC Settlement," Bloomberg, July 16, 2011
5. "A year after spill, BP gives political contributions to GOP leaders," The Hill, April 19, 2011
6. "A Year After Gulf Tragedy, Offshore Oil Companies Still Shielded by Liability Limits," ProPublica, April 19, 2011

1 comment:

  1. this is the how the "free market" works: less than 1% of the population kills our environment and future for their selfish gains, and get away scot-free (“exempt from royal tax”) this is a sure sign that capitalism should be reassessed. 99% of the people on this planet have the upper hand if we work together to fight injustice. we must protest these despicable acts! thanks for reporting the truth.


Please keep comments free of vulgarity. Your message will be deleted if not.
This thing is vulgar by it's self.