Deere (And Others) In The Headlights

Investors.com ^ | March 26, 2010 | INVESTORS BUSINESS DAILY Staff

[Kaslin]

Health Reform: As major businesses lay out the impact of ObamaCare in dollars and jobs, two things are clear: the costs will be enormous, and the president's vow to focus on "jobs, jobs, jobs" can no longer be believed.

Early returns on ObamaCare are coming in, and they belie proponents' claims of job creation and cost reduction. The costs will increase. They are merely being shifted to the states and to America's businesses, large and small.

AT&T, the country's largest telephone company, announced Friday it will take a $1 billion first-quarter charge related to the new health care law. The noncash charge has been triggered by a change in the tax treatment of Medicare subsidies.

Bloomberg reports that health care charges may shave as much as $14 billion from U.S. corporate profits, according to an estimate by benefits consulting firm Towers Walton. That's $14 billion that will not be available for expansion, research and development, or the hiring of new employees.

On Thursday, Deere & Co. announced that the Patient Protection and Affordable Care Act will adversely impact its expenses for fiscal 2010. As a result of the legislation, expenses for the farm equipment manufacturer are expected to be about $150 million higher on an after-tax basis, mainly in the second quarter.

At issue is the new tax the health care bill imposes on subsidies paid to corporations for 28% of their retiree prescription costs under a 2003 Medicare bill.

"The 2003 legislation encouraged companies to stay in the game and continue to fund their retirees' prescriptions," Deere spokesman Ken Golden said. "Otherwise, the retirees would go onto the Medicare prescription program, which would cost the government more money."

Now they're being punished for doing what the government asked them to do.

[montag813]

WHERE WERE THESE FOKKERS BEFORE THE BILL PASSED???

Thanks for nothing!

[Tucker822]

Why? Just curious because I own a small business.

[wally_bert]

My 0 worshipping neighbors with severe attitude problems probably never will.

[wally_bert]

I bet productivity and morale went up a notch after deep-sixing them.

[FrankR]

While a tragedy, this may also be of some use in fighting the kenyan and his minions.

All employers just announce that you no longer provide health coverage for your employees; but, obama has passed this wonderful, new health plan to cover those who are uninsured...as you are effective today.

We will, of course, stop deducting the your share of your previous healthcare cost, and, increase your monthly pay by what we were paying as the employer's share.

The taxation and tax penalties imposed by the new "national healthcare" has made it financially impossible for us and many other major corporations, as well as small businesses, to offer health insurance any longer.

This bill was passed to make sure that the 15-million people in the US who are - at any given time - uninsured will have insurance. So since they get insured, then you won't have any problem either...the number just increases from 15-million to somewhere in the neighborhood of 300 million uninsured people.

We would like to thank all those employees, and former employees, who cast their vote for barack obama and brought all this wonderful hope and change to us.

Oh, and one thing further, also due to the high taxes promised us, we are laying off 38% of our work force, those of you who are affected will find a pink slip in this Friday's paycheck.

Now comrades, get back to work or I will call the National Security Squads on you.

Have a nice day.

[RedMDer]

He’s also destroying small business which employs far more people than big business.

He wants to destroy private business period. ‘ Welcome to Obama Care’.

And Marxism.

This one of the vehicles.

[ntnychik]

The election will occur before next year’s premiums are revealed. If 0bama is tossed in ‘12, the plan’s big hit will be midway through his Republican successor’s first term. Guess who will be blamed?

[RedMDer]

No. Its already happening.