-------- Forwarded Message --------
From: Bruce Marshall <bmarsh@bmarsh.com>
Unbelievable ;Community Organizer shafts us again
Subject: BO & BP accounting!
It seems like a miracle that our beloved leader was able to convince BP to establish a $20 billion slush (oops, escrow) fund to compensate those hurt by the ongoing oil plume in the Gulf of Mexico . After all, he had no constitutional power to force them to do so; so had to resort to Chicago-style negotiating. But, let us take a closer look at the effect on BP’s finances: 1. BP will establish a $20 billion fund, but will pay only $7 billion into it during 2010. 2. BP is a British corporation, but has a very large operating entity in 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. Our dear leader 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. We won’t even discuss the effect on the US economy. Let us put the results into a table easily understood by the small people: · BP Cash Flow: o Escrow funding ($7 billion) o Dividend saving $7.5 billion o Tax savings $7 billion o Net favorable cash flow : $7.5 billion · US Treasury Tax Receipts: o BP Corporate income tax ($7.5 billion) o BP Shareholders ($0.45 billion) o Net unfavorable tax receipts ($7.95 billion) I guess we really should expect this. After all, our dear leader is the most inexperienced man in any room he walks into, along with being one of the most ignorant !
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