By St. Louis Business Journal

BP said it plans to cut its U.S. tax bill by $10 billion by deducting costs related to the oil spill.

To which U.S. Rep. Russ Carnahan, D-Mo., replied: ⿿Hell, no.⿝

⿿Under no circumstances will BP be allowed to turn this massive disaster into a tax scheme that lets them pocket taxpayer dollars. Absolutely not,⿝ Carnahan said in a statement Tuesday. ⿿BP needs to take full responsibility for the mess they have made. End of story.⿝

Under U.S. corporate tax law, companies can take credits on up to 35 percent of their losses. BP disclosed its tax credit plans as part of its second-quarter earnings report, which showed that the company would take a $32.2 billion hit over the spill, according to The Washington Post.

The credit for BP could mean that taxpayers will help pay for the $20 billion fund that BP created to compensate affected industries for economic damages tied to the disaster.

Copyright 2010 American City Business Journals

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