Wednesday, July 28, 2010
How the American people may help pay for the BP clean-up after all
By GARY BAUMGARTEN
Paltalk News Network
We've heard President Obama say it over and over again. BP is responsible by law to pay completely for the clean-up of the oil spill as well as the compensation for those who have lost money because of it. But there is, as there seemingly always is, a loophole.
That loophole is in the form of tax credits. To the tune of nearly $10 billion. Tax credits that the Wall Street Journal reports BP is expected to claim.
Which means that you and me, the taxpayers of the United States, would be stuck with $9.9 billion in costs to pay for the clean-up.
Presumably, the president was aware of this little loophole when he said the taxpayers would be off the hook. But, as is often the case in Washington, he was a bit loose with the financial facts, wasn't he?
That's not all.
No one knows the final cost of clean-up and compensation. A lawyer representing many people who he believes deserve compensation told the BBC the money BP has set aside is insufficient to pay those people and businesses that are financially screwed by the spill.
Meanwhile, BP's incoming CEO Bob Dudley was on CNN Wednesday morning saying that his company is not reckless.
You can be the judge of that. And of whether BP deserves a $9.9 billion tax break for being - as Dudley suggests - so responsible.
Photo: U.S. Army