aceventura3

The reason why we might want a person with executive business level experience in government - the nearly $10 billion tax credit being claimed by BP! What are the implications, among others here are two.

First, there is the $20 billion compensation fund, BP will put up $5 billion this year and the remainder over the next 3 years. The tax credit is half of this $20 billion fund.

Second, there is taxable income and there is cash flow. BP reported a $17 billion dollar loss in the second quarter, but they generated a net positive cash flow of $6.8 billion, which includes $2.1 billion spent on the spill already. They have generate more than enough cash to make their 2010 payment to the fund plus the first quarter of 2011.

The cost of the spill is punitive no matter how you look at it, but if you ever wondered why CEO's get paid what they get paid, just keep tabs on how the numbers unfold. So far BP has the upper hand in how they are managing this issue relative to the Obama administration.

And, it is funny how again and again, the folks in Washington cry and complain when a company follows the rules - and then want to change those rules after the fact. Just as in this situation with the $10 billion dollar tax credit, they want BP to voluntarily not take the credit. How about having some folks in charge of government who don't get taken to the cleaners on simple deals?

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"Democracy is two wolves and a sheep voting on lunch."
"It is useless for the sheep to pass resolutions on vegetarianism while the wolf is of a different opinion."
"If you live among wolves you have to act like one."
"A lady screams at the mouse but smiles at the wolf. A gentleman is a wolf who sends flowers."