Episode 215 • • 1:38:59 - 1:40:40
215: Drunk in America
BP Tax Liability Reduction, GAAP Accounting Benefits
BP's establishment of a $20 billion escrow fund for spill damages is revealed to be a significant tax advantage for the company. Under Generally Accepted Accounting Principles (GAAP), BP can expense the entire $20 billion in a single year, potentially reducing their US tax liability by $7 billion. This effectively results in a massive government-subsidized tax break for the corporation.