So if you received bailout money you get special tax breaks. Now to make up for this the democrats will attempt to raise our taxes.
http://online.wsj.com/article/..._LeadStoryCollection
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Works for BP too, as they will deduct 35% of their losses from the spill, including court judgments.
I don't think the Democrats will be raising any taxes anytime soon.
quote:Originally posted by JuanHunt:
Works for BP too, as they will deduct 35% of their losses from the spill, including court judgments.
As a corporation usually deducts 100 percent of its expenses from its income, what's your point?
quote:Originally posted by elinterventor01:quote:Originally posted by JuanHunt:
Works for BP too, as they will deduct 35% of their losses from the spill, including court judgments.
As a corporation usually deducts 100 percent of its expenses from its income, what's your point?
I'm not a corporate tax attorney, so you'll have to explain this:
quote:BP said Tuesday that it plans to cut its U.S. tax bill by $9.9 billion, or about half the amount pledged to aid victims of the disaster, by deducting costs related to the oil spill. A portion of that could be refunded from taxes BP paid in earlier years.
The company disclosed its intentions as part of its second-quarter earnings report, in which it said it would record a $32.2 billion charge to reflect the costs of the spill.
Under U.S. corporate tax law, companies can take credits on up to 35 percent of their losses.
The credit for BP could mean, however, that taxpayers will indirectly foot part of the bill for the $20 billion fund that BP established to compensate people and businesses harmed by the disaster.
Juan-
The article you linked explained it. I think BP paid around $8 billion in taxes last year. If 35% of their losses exceed what they paid the previous year, they are elligible for a credit.
The article you linked explained it. I think BP paid around $8 billion in taxes last year. If 35% of their losses exceed what they paid the previous year, they are elligible for a credit.
Which translates to the fact BP is paying the full 35 percent corporate tax rate.