Posted on 03/28/2010 10:37:37 AM PDT by American Dream 246
Dems Threaten Congressional Show Trials After US Companies Leak Real Economic Damage of Obamacare
Late last week several US corporations leaked how the democrat’s health care bill will kill their businesses. The radicals in Congress were not pleased that these corporations would go public with this devastating information. In response, democrats threatened to call for Congressional show trials to publicly humiliate these corporations. The Wall Street Journal reported:
It’s been a banner week for Democrats: ObamaCare passed Congress in its final form on Thursday night, and the returns are already rolling in. Yesterday AT&T announced that it will be forced to make a $1 billion writedown due solely to the health bill, in what has become a wave of such corporate losses.
This wholesale destruction of wealth and capital came with more than ample warning. Turning over every couch cushion to make their new entitlement look affordable under Beltway accounting rules, Democrats decided to raise taxes on companies that do the public service of offering prescription drug benefits to their retirees instead of dumping them into Medicare. We and others warned this would lead to AT&T-like results, but like so many other ObamaCare objections Democrats waved them off as self-serving or “political.”
…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.
The last paragraph says it all about the democrat’s trickery:
The Democratic political calculation with ObamaCare is the proverbial boiling frog: Gradually introduce a health-care entitlement by hiding the true costs, hook the middle class on new subsidies until they become unrepealable, but try to delay the adverse consequences and major new tax hikes so voters don’t make the connection between their policy and the economic wreckage. But their bill was such a shoddy, jerry-rigged piece of work that the damage is coming sooner than even some critics expected.
Byron York at The Washington Examiner has more on the show trials.
Waxman is also demanding that the executives give lawmakers internal company documents related to health care finances — a move one committee Republicans describes as “an attempt to intimidate and silence opponents of the Democrats’ flawed health care reform legislation.”
…Waxman has ordered the executives to explain themselves at an April 21 hearing before the Energy and Commerce Committee’s investigative subcommittee. That subcommittee just happens to be chaired by Rep. Bart Stupak, the Michigan Democrat who held out his vote on health care reform until a few hours before final passage on March 21, giving the bill’s opponents the unfounded hope that he might vote against it.
Waxman’s demands came Friday in letters to several executives. “After the president signed the health care reform bill into law, your company announced that provisions in the law could adversely affect your ability to provide health insurance,” Waxman wrote to Randall Stephenson, chairman and CEO of AT&T. A few hours before Waxman sent his letter, AT&T announced it will take a $1 billion charge against earnings because of the tax provision in the new health bill. AT&T also said it will be “evaluating prospective changes” to its health care benefits for all workers…
Waxman’s request could prove particularly troubling for the companies. The executives will undoubtedly view such documents as confidential, but if they fail to give Waxman everything he wants, they run the risk of subpoenas and threats from the chairman. And all as punishment for making a business decision in light of a new tax situation.
These democrats in Washington are nothing but thugs. They’ll try anything to keep the truth from coming out about their disastrous legislation.
What a prescient reply!!! Well thought out!!!
I find all of your postings and information intensely interesting!!!
The Corporate biggies would kick the knock the socks off these sorry a - - RATS - the intelligence of the business community on “trial” so to speak, would only serve to show to the American Public how stupid and moronic the U.S. Representatives are!!
Thank you for that reply. It cut through the negativity I’m hearing and feeling and is a real boost - because I know you’re right.
I really wish they would do that but, unfortunately, they (big business) have too much respect to really unload on those creeps.
My understanding is that 70% or so of corporate donations in the last coup d'tat 2008, went to 0bozo & the demoRATs. I would love to say, serves them right, but unfortunately those of us who hated 0bozo & voted against him are probably likely to suffer the most devastating financial & economic consequences.
Where are the states that there to to stand up and tell 0bozo to F__K OFF if 0bozoDeathCare passed? Outside the lawsuits filed (which I have no confidence that SCOTUS will rule in favor of) the only way to get our freedom back is for 8-10 states to secede, led by Texas. And I will join them in a heartbeat!
The socialist-fascist demoRAT commie pigs will carry out & enforce their subpoenas and consequences.
As much as I hate 0-bozo the commie pig & the socialist-fascist demoRATs, at least they follow through on their threats. Repubs throw up their hands in surrender at the first sign of resistance. And I imagine these so-called business execs will do the same thing in cowering & caving before the demoRAT fascists.
I wonder how many CEOs are left in this country with a pair of balls?
I would love to see them go up there and give them the what for.
These company execs need to come loaded for bear.
No namby pamby hat in hand BS like the auto company execs last year.
They need to come in roaring and embarass these Dem overlord wanna-bees with how this bill will ruin this country.
The Dems are not worthy of any respect, even if they hold Congressional titles.
They are friggin’ nobility.
Correction to # 151: They AREN’T friggin’ nobility.
Time for every company that can... to re-incorporate in another country, say Panama.
And then tell Congress to STFU.
It is high time that the people constitute grand juries to indite these congressmen for malfeasance, corruption, betrayal of oath, etc. Drag their sorry butts to answer for their high crimes.
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