[Raycpa]

Let's see...BP makes these payments. IRS takes a cut from the recipient...hmmm, kinda sounds like a shakedown to me!

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.

[DrC]

“A wash in net income.”

But not a wash in net taxes. Given the corporate tax rate is 35% and that most affected workers likely are in a 15% tax bracket, even when SS taxes are added on top, the net haul by the tax man actually will be lower. Of course, if the $20B comes out of profits that had been beyond the reach of Uncle Sam, then any taxes collected will be pure gravy.