3M sees 1Q charge of $85M-$90M for health reform (ObamaCare)

AP ^

[Chet 99]

NEW YORK — 3M Co., which makes a myriad of products including Post-Its and Scotch Tape, said Friday it expects to take a one-time noncash charge of $85 million to $90 million due to changes in tax deductions relating to the newly enacted health care law.

3M, which is based in Maplewood, Minn., is one of a number of major companies that have had to take a charge on their books to account for a change in the tax treatment of Medicare Part D reimbursements in the future.

[sr4402]

Yes, the Law of Unintended Consequences is following the Democrats on Health Care. Just wait for the increased premiums and until the working young adults have to pay!

[denydenydeny]

Congressional subpoena on the way in three...two...one...

[Parley Baer]

Looks like Waxman will need a whole lot of subpoenas. He might also look into getting a lot of extra chairs with all the companies posting. I just hope this guy makes a big a$$ of himself.

[exit82]

These CEOs need to tell Waxman off in no uncertain terms.

Unintended consequences of their everyone-gets-a-pony scheme.

[21twelve]

Okay, you made me finally get around to making my new tagline!

[bruinbirdman]

"Congressional subpoena on the way in three...two...one..."

Waxman would say 3M Co. doesn't need to make any contributions to Medicare Part D. It is optional and shouldn't be subsidized additionally by taxpayers who will be paying for Nationalized Medicine soon, anyway.

yitbos

[Iron Munro]

Commie-Care is nothing more than another one of Obama’s wealth redistribution schemes.

[familyop]

I reckon they got what they asked for.

The following are Fortune 500s that filed briefs in favor of "affirmative action" in the Michigan "Grutter v. Bollinger" (Michigan University) case.

http://www.umich.edu/~urel/admissions/legal/gru_amicus/32_internatl.pdf

3M
Abbott Laboratories
American Airlines
Ashland
Bank One
Boeing
Coca-Cola
Dow Chemical
E.I. Du Pont De Nemours
Eastman Kodak
Eli Lilly
Ernst & Young
Exelon
Fannie Mae
General Dynamics
General Mills
Intel
Johnson & Johnson
Kellogg
KPMG
Lucent Technologies
Microsoft
Mitsubishi
Nationwide Mutual Insurance
Nationwide Financial
Pfizer
PPG
Proctor & Gamble
Sara Lee
Steelcase
Texaco
TRW
United Airlines
General Motors Corporation

http://www.umich.edu/~urel/admissions/legal/gru_amicus/gru_gm.html

[ilgipper]

So, how is the stock market rising if taxes are reducing profits by the 100s of millions?

[USNBandit]

I hope a lot of CEOs that aren’t invited show up for the hearings.

[diverteach]

$5 single roll of scotch tape coming soon to a store near you.

[bruinbirdman]

Say company pays 2.5% of operating expenses on employee insurance. Uncle Sam gives them a tax deduction of $2.5X x 35% (corporate income tax on $2.5X).

If the company drops medical insurance altogether and uses ObamaCare, it saves a heck of a lot more than 35% of $2.5X. It saves $2.5X.

yitbos

[Son-Joshua]

This is corporate America retaliating against obamacare and the rest of the marxists in congress. These corporate CEO's are using this disasterous bill to deplete the federal tax coffers by taking these write offs during a major recession. Capitalism will prevail.

[Son-Joshua]

This is corporate America retaliating against obamacare and the rest of the marxists in congress. These corporate CEO's are using this disasterous bill to deplete the federal tax coffers by taking these write offs during a major recession. Capitalism will prevail.

[Jet Jaguar]

Ping

[I_be_tc]

That is what I have been thinking. They will starve the beast by taking these huge 1st quarter write-offs. No 1st quarter deposits to the federal tax coffers.

[DrDavid]

The rules corporations have to operate under require them to disclose this type of expense. Congress created this extra new expense and required the report of expenses, which law do these corporations have to follow? I can't wait for Waxman to hold public hearings on this...

[VeniVidiVici]

If the company drops medical insurance altogether and uses ObamaCare, it saves a heck of a lot more than 35% of $2.5X. It saves $2.5X.

Yes. I think we've been kicking this idea around since last year.

There has never been a choice to keeping the insurance you currently have because with the Democrat mandates in the bill plus the fines, it will be cheaper for companies to drop health insurance altogther. Forcing people onto the government "option".

[bruinbirdman]

"it will be cheaper for companies to drop health insurance altogther. Forcing people onto the government "option". "

And the current new requirements under ObamaCare for existing health insurers are so prohibitive, the accuaries themselves, this is what insurance companies do, calculate that all will be out of business in 2 - 3 years.

So Waxman claims the companies reporting lower earnings because of ObamaCare are not being truthful. They should report savings, higher profits.

Course these companies will have these savings taxed as windfall because of ObamaCare.

yitbos