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July 5, 2010

Corporate Welfare in Action

The American taxpayer helped BP pay the lease for the Deepwater Horizon rig.

BP was reaping sizable tax benefits from leasing the rig. According to a letter sent in June to the Senate Finance Committee, the company used a tax break for the oil industry to write off 70 percent of the rent for Deepwater Horizon — a deduction of more than $225,000 a day since the lease began.

And while they bitch and shriek about spoiled freeloaders on unemployment, I would wager that the Republicans would gladly continue to allow this tax loophole. And why not? The Republicans were happy to keep paying Big Oil $35 billion a year in corporate welfare.


Filed under: Corporate Welfare || Energy || Environment || Oil Drilling || Republicans

Posted By Bob Cesca | July 5, 2010 9:56 AM

Comments

So millions millions for a foreign corporation, but nothing for their fellow citizens or The Troops.

"O homines ad servitutem paratos!"

Posted by: Nanotyrannus [TypeKey Profile Page] at July 5, 2010 11:15 AM

Oil-sucking corporate fuckers die.

That is all.

Posted by: Red Pill [TypeKey Profile Page] at July 5, 2010 11:32 AM

Those corporate hacks in Congress who are screeching about the deficit ought to ask the oil industry to pay their fair share of taxes. Enough of the tax breaks for huge industries.

Posted by: danann [TypeKey Profile Page] at July 5, 2010 11:34 AM

This country has really one off the rails. My question is, is our government actually THIS corrupt? They deny the unemployed a measly little extension but allow BP to run the show?

Makes me want to throw up.

Posted by: Jan [TypeKey Profile Page] at July 5, 2010 11:47 AM

The fact is, monies spent on unemployment and other low end benefits (food stamps etc.) are of far greater stimulus value than tax cuts for the wealthy or for industry. The wealthy save more when their taxes are cut (and industry pays out more in dividends which is effectively the same thing as giving rich people a tax cut) but the poor/unemployed spend every cent of what they are given. It's like .44 cents on the dollar versus 1.14 worth of stimulus. What the legislature is doing by keeping oil subsidies and relatively low tax rates on the rich while simultaneously cutting unemployment and curtailing other low end bennies is 1. a straight up redistribution of wealth and 2. inherently NON STIMULATIVE. Lets take a moment and ask why they would do this (they aren't all morons). What would happen if the economy where to be effectively stimulated into "recovery"? Oil prices through the fucking roof, that's what. They are engineering demand destruction as a way of ameliorating the symptoms of depletion while still guaranteeing profits to the fossil fuel industry. If you look at it that way, it all makes perfect sense.

Posted by: Radical SAHM [TypeKey Profile Page] at July 5, 2010 12:16 PM

An MSNBC news chick this morning speculated that BP might "run out of money" before claims are paid, having paid out $3 billion in claims thus far. She also suggested that claims for mental health clinics, facilities, counseling, etc. were frivolous. What is going on with this country that there are so many people more concerned with the health of companies than of people...

Posted by: ceu [TypeKey Profile Page] at July 5, 2010 1:44 PM



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