Last week, Rep. Henry Waxman demanded that AT&T, Verizon, Caterpillar, and
Deere & Co. justify their claims about the “costs the companies plan to book related to the new health-care law.” According to Business Week, “Dallas-based AT&T said in a regulatory filing yesterday it would record $1 billion of costs, the most of any U.S. company so far. AT&T previously received a tax-free benefit from the government to subsidize health-care costs for retirees. Under the new bill, AT&T will no longer be able to deduct that subsidy.”
The Democrats are confused about the philosophy of the bill they themselves just passed. This is an income redistributive bill. Just ask Max Baucus.
Even according to their own estimates, this bill will cost about $1 trillion over the next year. The money is going to come from somewhere. Corporations and the wealthy are the easiest targets. AT&T et al are simply reflecting that reality.
The problem is that these companies claim they owe this amount every year when its really the total amount they will owe over several years.
ReplyDeleteIn any case, the reason they owe it is because they can no longer get subsidies for health care AND pay no taxes on it AND deduct it from their taxes. Its a loophole in the Republicans Medicare Part D sweetheart deal.