BP Plc. (NYSE: BP) This Tuesday BP stated that the US Securities and Exchange Commission and Justice Department have launched probe into market trading related to the aftermath of the gulf spill.

The BP Company’s newly appointed Chief Executive Bob Dudley termed the oil spill an awakening call to the entire industry in the wake of losses estimated by the oil major company.

Many US probing agencies looking into various aspects of the Mexican oil spill incidence have completed their findings and the criminal report is ready for further processing and submission to the governing authorities who will initiate their proceedings based on the criminal report prepared.

According to the criminal report it seems the involvement of three companies resulted in an extensive oil spill. There is a likelihood of a one year lapse of time before the charges can be leveled and filed as per report appearing at Washington Post. Read the rest of this entry »

Ever since Apple Inc. (Nasdaq: AAPL) released the iPhone 4 a few week ago, the stock has traded relatively well despite the drop call problems.

The company is now giving out free bumpers for the iPhone and refunding those who have bought one. The stock has traded in a fairly tight range between $240 and $270 and is quickly approaching a 52wk where it may break out.

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players as well as sells various related software, services, peripherals, and networking solutions. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers.

Increase in taxes is bound to take its booty in case Congress declines to give its assent to President Obama’s proposed extension of Making Work Pay tax credit fast. The effect could reduce the amount of the paycheck.

The past year had witnessed the credit made available under the government’s Stimulus Package, which resulted in enhanced check values to the extent of about $400 when income tax is filed in single capacity and to the extent of about $800 in case income tax return is filed in the capacity of a joint. This enhancement was due to the reduction in the tax amount.

Now there is an additional amount of about $15, which one used to get every two weeks along with the pay under the above scheme, similar to Bush Tax Cuts in the past. The scheme is destined to expire if the proposed extension could not be assented by the voting act of Congress.

There is a basic difference between Bush tax cuts and the present tax cuts. Bush tax cuts benefited the rich Americans in contrast to the Making Work Pay Credit, which focuses on benefiting the middle class, which collectively make up a large percentage of all tax payers.

One should be prepared to get small checks after the benefit gets withdrawn.

There was a lot of uproar at the time of Bush’s tax Cut, so it is quite surprising that the Making Work Pay Credit is the least talked of as per the views expressed by Chuck Marr, Director of Federal Tax Policy at a center concerned with budget and policy prioritization.

As per applicable details of Making Work Pay Credit, the tax payer bracket of $75,000 or less have the eligibility for getting full credit benefits. Tax payers earning more than $75,000 get a fraction of the credit amount.

During previous year, since the effect of tax break was not implemented till the month of April, the $400 credit amount was given during the period after the month of April; as a result many tax depositors entitled for $400 got an additional $15 in a week in contrast to every 2 weeks during 2010.

Since the Making Work Pay Credit has in its ambit 75 % of American beneficiaries, by the withdrawal of this tax benefit the government shall have substantial funds needed, but politically it shall be a wrong and costly decision having repercussions affecting the present government stability.

Since numerous people benefited from this tax cut, taking it back seems easy. But not getting the extension shall affect a large number of people and upset them.

During the $3.8 trillion budget proposal of 2011, Obama has proposed for one more year extension to Making Pay Work Credit except for those individuals earning more than $250,000 in one year.
In case the extension is withheld, 110 million families revert back to receiving checks, which they were receiving during 2009-10 period, and their tax liability shall increase.

The cost of extending the Making Work Pay Tax shall be around 60 billion. There seems to be a likelihood that Congress may in the end pass the extension.

Such a view is held because the economy has been drifting towards weakness, resulting in more expenditure by the persons getting the tax benefit. Not extending the effect shall result in a considerable reduction in the expenditure of these people and the economy shall be further dragged down.

Oil spill giant BP PLC (NYSE: BP) reported a$17.2 billion quarterly loss, compared to a $4.39 Billion earning in the previous same period last year.

The company has also announced Robert Duley as the new CEO, replacing Tony Hayward.  The new CEO will take over starting Oct 1st.

Dudley has adamantly defended BP’s actions since the explosion. The company has pledged $20 billion to a cleanup and damages account, and declared on Tuesday that it has set aside $32.2 billion to cover the costs of the Gulf of Mexico oil spill.

British Petrolium is the largest producer of oil and gas in the United States, home to 40 percent of the company’s assets and responsible for one-third of its worldwide oil and gas reserves. It has huge interests in Alaska and the Gulf, with vast tracts yet to be developed.

BP p.l.c. provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products. The company operates through two segments: Exploration and Production, and Refining and Marketing.