Skip to comments.IRS May Tax Payments to Gulf Coast Victims
Posted on 06/22/2010 11:02:05 AM PDT by Nachum
NEW ORLEANS Out-of-work Gulf Coast shrimper Todd Pellegal spent his first $2,500 check from BP quickly, paying off bills and buying groceries for his family.
He never even considered putting some of it away for taxes.
Now he's among the people up and down the Gulf Coast reeling from the oil spill disaster who are surprised and frustrated to find out the Internal Revenue Service may take a chunk of the payments BP PLC is providing to help them stay afloat.
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The list, ping
Mr. Pellegal it is income!
The IRS would fight buzzards to pick at the last remaining flesh on the bones of a dead taxpayer.
They tax your Unemployment too, what made them thing they would get this handout with no strings attached?
It sux, but I would have immediately asked about the taxes on that.
Known as: Insult to Injury courtesy of Hussein 0bama.
If they are getting paid for lost wages or income, why wouldn’t it be taxable?
If they are getting paid for damages like they would if collecting on a law suit, why wouldn’t it be taxable when other law suits are taxable?
If they are getting paid for personal injury, then no it should not be taxable.
I knew for sure they’d do that. Obama want’s all that BP Money set aside, rest assured it will all go to government cleanup workers (aka democrats without real jobs) and a taudry amount will go to joe shrimp packs of which most will be taxes. Obama gets to ban oil drilling and get paid for, and let the environment be destroyed by refusing help from other countries thus ensuring a new frothing at the mouth group of activists to campaign for Cap and Trade, it’s PERFECT !!
is tax money gained from IRS....... INCOME?... that can be taxed?...
Obama really cares. meh. what is new? Americans better get off their hind ends and drum the commies out of DC.
Amendment the 16th: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived...”
Let's see...BP makes these payments. IRS takes a cut from the recipient...hmmm, kinda sounds like a shakedown to me!
“The government do take a bite, don’t she?”
No, its neutral. BP income goes down by amount of the payment. Recipient's income goes up by amount of payment. A wash in net income.
So let me get this straight, the Govt shakes down BP for money to get to the residents.
BP takes the money, which it will right off against income and profits and send it to the escrow account run by Feinberg to disburse to people.
The people who get it get taxed on income, pay sales taxes when they pay for stuff, etc.
Do you people realize what a mafia racket the Govt is yet?
The Govt makes the mob like like choir boys.
This entire thing is a scam only liberals could love.
So in the end the govt is going to get about 25% of all the BP money.
I wonder how much of the Gulf fishing industry was cash (unreported or taxed) business. Do workers idled by the spill have to produce W2s to validate their claims of lost wages?
Maybe PetroBas can hire them. I am pretty certain if they want to drill in the Gulf, the Obama Administration wouldn’t have a problem with it.