Mar 27, 2010

Big business losses resulting from Obamacare; gov't attempts to muffle bad news


ObamaCare “was such a shoddy, jerry-rigged piece of work that the damage is coming sooner than even some critics expected.”  The Democrats have now begun to berate corporations that started to account for the anticipated losses. The Wall Street Journal editors note:

"Henry Waxman and House Democrats announced yesterday that they will haul these companies in for an April 21 hearing because their judgment “appears to conflict with independent analyses, which show that the new law will expand coverage and bring down costs.”


"In other words, shoot the messenger. Black-letter financial accounting rules require that corporations immediately restate their earnings to reflect the present value of their long-term health liabilities, including a higher tax burden. Should these companies have played chicken with the Securities and Exchange Commission to avoid this politically inconvenient reality? Democrats don’t like what their bill is doing in the real world, so they now want to intimidate CEOs into keeping quiet."


"On top of AT&T’s $1 billion, the writedown wave so far includes Deere & Co., $150 million; Caterpillar, $100 million; AK Steel, $31 million; 3M, $90 million; and Valero Energy, up to $20 million. Verizon has also warned its employees about its new higher health-care costs, and there will be many more in the coming days and weeks."

Excerpted from WSJ more here or http://online.wsj.com/article/SB10001424052748704100604575146002445136066.html

1 comment:

Subvet said...

Yep, fall down and worship the One, his minions and their work or you'll be sent to reeducation camp. There the unrepentant will be bound in chains and cast into the outer darkness.

Phooey.

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