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.
“Bingo! They should go in and lay out the truth about how the expensive this new reform really is.”
Yes, and they should ask Waxman why members of Congress have exempted themselves. Not that they’d get an answer...just to spread the word.
Google H.R.645.
I predict that Waxman will cancel these hearings over the next week, because the RATS cannot win this argument, even aided by their MSM handmaidens.
He might also add that anyone who truly believes otherwise is an ass.
These companies HAVE to report this stuff.
Their healthcare costs went from getting a tax credit to an up to 40% tax!
Don’t think thats a BIG HIT?
I've always been opposed to Medicare. (And I'm close to being "covered.") I assume most people here are opposed too.
Two questions really.
Why is it bad that the Federal Government will no longer effectively subsidize corporate medical plans for retirees? I don't want to subsidize anyone's medical plan.
And why is it bad if the Federal Government reduces the amount of money it spends for Medicare? I suppose one could argue that it is money that is just being spent somewhere else, and that somewhere else is worse than Medicare, but that seems like a bad argument to me. When Mark Levin rails about how seniors are going to be screwed by Obamacare, it seems to me that if Medicare were phased out somehow that this would "screw" seniors too. But isn't some sort of phasing out what needs to happen?
ML/NJ
I hope that some of these CEO’s have the courage to tell the Senate to POUND SAND!
“Senator, we’re going to spend another $100 MILLION to unseat every one of you communist bastards!”
“I don’t know why so many people think this. Of course they could be compelled. So far, it’s just a letter. But Waxman (who is a prolific subpoena issuer) could simply issue a subpoena if he they decline. Congressional subpoena power is robust - virtually unlimited.”
They can subpoena all they want. Getting those enforced and through the court system is another matter. At the very least, that would kick this out past November 3rd. After which, there will be a NEW set of subpoenas...
What Would Hitler Do?
This is what real Fascism looks like...we MUST defeat them and rip apart their infrastructure (unions, education, legal, etc.).
So would Hitler. It appears we now live in a country that's run by threats & intimidation, Chicago style. We can only hope the companies whose budgets will be trashed with Obamacare will stand tall and not back down.
You're living in make-believe land. People don't ignore Congressional subpoenas, and with good reason. They can be, and are when need be, civilly enforced (2 U.S.C. §§ 288b).
It won't even come to subpoenas. CEO's of public companies don't ignore Congressional "invitations", when extended by either party in Congress.
Haven't you ever asked yourself - "Why do people go before House or Senate Committee hearings only to take the 5th Amendment?"
They go because they have to.
And I thought it was business in a free system that provided.
I was wrong, it's GOVERNMENT that provides for us in a free enterprise nation and business that hinders GOVERNMENT.
You go get 'em black hole nostrils!
My God, these tyrants in the WH have clearly gone off the deep end. Rules for Radicals is their Bible.
It would be so much more entertaining for the liberals to watch a parade of shareholder class action lawsuits.
Absolutely. Bring it on. I can think of nothing better than having the captains of industry explain to those nitwits on C-Span, why their communist efforts will severely impact our businesses and their employees.
Yeah, bring it on lefties. I dare ya!
Independent analysts? Is Congress to lazy or stupid to do their own math?
It would be justice for the CEO's to show up and call the Congressional idiots, IDIOTS if they thought government ANYTHING is cheaper than the private sector.
GEESH!
“leak”? Anyone ever heard of the first amendment?
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