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.
Actually, I would like to see the CEOs and all of their accountants and attorneys show up. Put the facts right out there in plain sight of the public. Expose the true costs of this socialization of our country. I would even want the CEOs to use the venue to announce that X number of plants will have to be closed and X thousands of jobs are going to have to be eliminated because of these new taxes and penalties.
Given the choice between testifying to Congress or facing S-Ox penalties, Congress will be a cakewalk.
Every hour of every passing day the Democrats reveal that they are a criminal organization who should be prosecuted under the RICO statues.
“The only thing that mattered to them was for the Kenyan to sign some bill entitled “health care”
A bill that enables Obama to form his own militia...I’m not kidding. It’s posted here somewhere.
OBUMMER WILL JUST NATIONALIZE THE COMPANIES........
Companies to Waxman, Screw You, we will not comply.
Der Furher Obama and his Brown Shirts not happy with the leakers of truth.
So how’s that PC crap workin’ out for ya’ Corporate America?
Bring it on, RATs!
I thought about that as well, but I am afaid the congressthugs, as they so easily do, will come up with spin showing the companies were not telling the truth....
“I wish for once these company owners would just be good Americans, speak the truth, stand up to the Waxmans of the world and have some faith in doing the right thing.”
Totally agree! A CEO isn’t worth much who doesn’t defend his industry or company when it counts. The best way to stop these bullies is to stand up to them with a good offense. And we’ve all seen just how thin-skinned these members of Congress are when confronted.
Lantos’ satanic sentiment is at the heart of the democratic party — kill yourselves before we do it to you.
Congress Kangaroo Court
The Democrat Party continues to show us all they are nothing more than a criminal enterprise, if for no other reason than what they did to the black family. To claim otherwise merely shows self delusion.
I wonder how many of the 16000 new IRS agents will be used to look for defects in the tax forms of these corporations (and anyone else who speaks poorly of obamacare).
probably true, but at this point, very few have any confidence in this current crop of congressthugs, and as such, besides the 30% looney moonbats, no one will believe what congress says anyway..
While Congress enjoys (virtually) unlimited investigative powers as they relate to private citizens, the Separation of Powers as well as the principle of Federalism limits, or negates any authority they would wish to assert over a state court proceeding.
I guess these companies can do the same, yes? "
If they're are subpoenaed (which would be likely if they refuse Waxman's invitation), those subpoenas will withstand any motion to quash.
Google H.R. 645.
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