Companies Push to Repeal Provision of Health Law

[IndianaGreen]

Companies Push to Repeal Provision of Health Law

By STEVEN GREENHOUSE
Published: March 29, 2010

An association representing 300 large corporations urged President Obama and Congress on Monday to repeal a provision of the health care overhaul that prompted AT&T, Caterpillar and other companies to announce substantial charges for the current quarter.

The association, the American Benefits Council, said the provision — which reduces the tax deductions for companies with drug coverage for their retired employees — would deal a significant blow to corporate profits and would discourage companies from hiring more workers.

AT&T announced last week that it was taking a $1 billion charge because of the provision. Deere & Company announced a $150 million charge, Caterpillar a $100 million charge, and 3M a $90 million charge.

Many companies said they were taking these charges now, before the current quarter ended, to comply with accounting rules. But some corporate critics asserted that the companies’ rapid response to the health legislation was aimed at pressing the administration to repeal the provision.

James A. Klein, the president of the American Benefits Council, called the provision “a serious mistake that is having negative and unintended consequences.”

http://www.nytimes.com/2010/03/30/business/30subsidy.html?hp

This wouldn't be happening under single payer.

[geek tragedy]

1. Corporate America is stamping its feet and pouting.

That's a good sign.

[IndianaGreen]

3. 'Accounting rules require companies to take immediate charges'

Have you ever heard of FASB? Obviously not!

In a telephone news conference on Monday, Mr. Klein cited a study by Towers Watson, a consulting firm, saying the loss of the deduction would cost companies $14 billion in future years.

“Particularly in this economic environment, it makes no sense to impose this type of a hit on companies’ financial statements,” Mr. Klein said. The provision takes effect in 2013, but accounting rules require companies to take immediate charges equal to the current value of any known hit to future profits.

http://www.nytimes.com/2010/03/30/business/30subsidy.html?hp

[geek tragedy]

4. Didn't you used to be a Socialist?

Now you're decrying a hit to AT&T's income statement and balance sheet?

[IndianaGreen]

5. Accounting has nothing to do with politics

You should know that. Have you googled FASB yet?

[geek tragedy]

6. "accounting has nothing to do with politics."

LMAO.

Yeah, those accounting firms never tell clients what they want to hear.

[IndianaGreen]

7. Don't be so ignorant! Accounting follows well prescribed rules

whether one is a for-profit or a non-profit organization.

You can't slime an entire profession based on a handful of cases, such as Arthur Andersen. That's like calling the military assassins based on the actions of a few.

People have to trust the veracity of the financial statements of the institution in which they have invested their money. Many of those investors are middle class people, who set aside a little money during their working years in hopes of having a decent nest egg when they retired. They need to know that the balance sheet shows the condition of the company whose stock they hold, and that the income statement is an accurate representation of its liquidity.

[PBS Poll-435]

8. I would think that the balance sheet is where an "accurate representation of liquidity"

Exists.

Like Acid Test, Current Ratios, etc.


Hell, even a Cash Flow Statement is more useful in this instance than an Income Statement.





Don't be so ignorant!

[PBS Poll-435]

10. Sad that I never got a response

:(

[PBS Poll-435]

2. LoLz @ AT&T

Who wouldn't want to reduce their taxable income by 1 BILLION dollars amid the panic/hysteria/weeping regarding the passage and the signing of the bill into law.

Will they really spend an additional billion because of the bill? Who knows. But why not exploit the law, now, for financial benefit?

[FrenchieCat]

9. The more you post, the more we like the bill.

Keep posting the bullshit you scavenge!
Gives us more! :applause: