Allegheny Tech to take $5M health care charge (ObamaCare)

AP ^

[Chet 99]

PITTSBURGH — Metals processor Allegheny Technologies Inc. said Monday that it plans to take a $5 million non-cash charge in the first quarter related to the health care overhaul legislation.

Under the new law, companies will have to start paying taxes on a government subsidy they receive for providing drug benefits to retirees.

[gov_bean_ counter]

Just trying to embarrass Obama. /s

[VeniVidiVici]

Under the new law, companies will have to start paying taxes on a government subsidy they receive for providing drug benefits to retirees.

Somebody please refresh my memory on this. I'd go look myself but if I read one more BS article on this my head will explode.

Is it the "government subsidy" they will be paying taxes on, i.e. the gov't gives them money and now they'll be taxed on that amount, OR is it the companies are allowed to take a write-off on the amount of prescription drugs offered and the media/Left-Wingers are using this as propaganda by calling this write-off a "subsidy"?

[PogySailor]

It's the later as far as I know. The tax write-off was an incentive added to discourage companies from dropping prescription drug coverage for retirees and driving up the cost of Medicare Part D.