Maybe we need some more “ass kicking”

Courtesy of GorT, Sr. we have the following information about the President’s latest “ass kicking” of BP with regards to the Gulf Oil spill. 

1. BP will establish a $20 billion fund, but will pay only a third ($7 billion) into it during 2010.

2. BP is a British corporation, but has a very large operating entity in the US but only about 30% of it’s income is derived from the US .

3. By Generally Accepted Accounting Principles (GAP), BP must book the entire $20 billion expense in the year accrued. Therefore, they will book a $20 billion expense in 2010, reducing their US tax liability by $7 billion.

4. President Obama also convinced this massive corporation to show their concern for the “small people” by withholding dividends to their shareholders for the last 3 quarters of 2010. This reduces their outward
cash flow by about $7.5 billion, including approximately 40% of that amount to US citizens. Assuming that the Bush tax cuts will survive through 2010, the US Treasury will lose another $450 million in taxes on that amount.  Actually, a little less as some shares are owned by non-taxable funds such as pension plans and endowments.  The US Treasury isn’t the only entity losing money on this deal, many shareholders and retirement plans (401Ks, etc.) will lose those dividends.

A table helps present the data well:

BP’s Cash Flow
Rescue effort escrow funding-$7 billion
Dividend savings+$7.5 billion
Tax savings on reduced earnings+$7 billion
Net cash flow+$7.5 billion

and…

US Treasury Tax Receipts
Reduced BP Corporate income tax-$7.5 billion
Reduced shareholder tax on investments-$0.45 billion
Net impact to tax receipts-$7.95 billion

Dumbasses.

About GorT

GorT is an eight-foot-tall robot from the 51ˢᵗ Century who routinely time-travels to steal expensive technology from the future and return it to the past for retroinvention. The profits from this pay all the Gormogons’ bills, including subsidizing this website. Some of the products he has introduced from the future include oven mitts, the Guinness widget, Oxy-Clean, and Dr. Pepper. Due to his immense cybernetic brain, GorT is able to produce a post in 0.023 seconds and research it in even less time. Only ’Puter spends less time on research. GorT speaks entirely in zeros and ones, but occasionally throws in a ڭ to annoy the Volgi. He is a massive proponent of science, technology, and energy development, and enjoys nothing more than taking the Czar’s more interesting scientific theories, going into the past, publishing them as his own, and then returning to take credit for them. He is the only Gormogon who is capable of doing math. Possessed of incredible strength, he understands the awesome responsibility that follows and only uses it to hurt people.

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