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Posted on 03/31/2010 9:11:09 AM PDT by opentalk
We turn to the Wall Street Journal for the math on what it will cost to raise taxes on corporations’ retiree prescription drug coverage. This is the provision that has caused several corporations to take markdowns recently.
The bottom line: by closing this “loophole” — which was originally created to dissuade companies from dumping retirees’ prescription costs into Medicare Part D — the government could lose more than five times what it brings in.
The Employee Benefit Research Institute calculates that the 28% subsidy on average will run taxpayers $665 in 2011 and that the tax dispensation is worth $233. The same plan in Medicare costs $1,209. Given that Congress has already committed the original sin of creating a drug entitlement that crowds out private coverage, $233 in corporate tax breaks to avoid spending $1,209 seems like a deal. If one out of four retirees is now moved into Medicare, the public fisc will take on huge new liabilities.Emphasis mine. Such corporations have four main options: drop or reduce prescription coverage for their retirees, pass new costs along to cash-strapped consumers, lay off workers, or simply bear the tax losses and pass them along to shareholders.
Not good options, are they? As it sucks more and more money out of employers like Caterpillar, John Deere, AK Steel, AT&T, etc., (this provision alone will cause an estimated $14 billion in sudden losses), can we start referring to ObamaCare as the “un-stimulus?”
UPDATE: This particular tax provision will cost Boeing $150 million, the company reports today. Serious bad news for Sen. Patty Murray, D-Wash., who is about to get a serious challenge from perhaps the one man who can beat her.
yup and it will permit millions more to sit in dr office 7 days a week for drugs.
This has never been about healthcare.
I wish I could say I’m shocked but I’m not. Of course the CBO completely missed this angle. Or should I say the Rats failed to realize what happens when you raise taxes on people...they avoid those things that cause them to be taxed. They should realize this as that’s part of their justification for sin taxes.
The rats bought it, they OWN IT.
Its really good that they cooked this thing up behind closed doors. Think of the inefficiencies that would have occurred if they debated it openly and slowly? Hey DEMS, you own this stinker lock, stock and barrel (oh my, a gun reference hopefully no one will notice).
Nothing to see here. Move along. /s
Another Par on the Obama course.
Few techniques are more effective at increasing dependence on government than undermining the operation of free markets, thereby creating shortages and unemployment. Since the media rarely report the association of the "unintended" consequences of legislation with the original legislative act, or its Democratic advocates, this is a win-win situation. The same people who caused the chaos ride in as paladins on white horses promising to save the people from the cruel effects of policies, which we in fact initiated. Recent examples are Senator Dodd and Congressman Frank proposing new regulations on the banking industry.So long the media are our willing accomplices and we succeed in demonizing dissenting voices like Fox News and Talk Radio (When we say "talk radio" we mean "Rush") we should pursue these policies vigorously. The resulting damage to the economy and the body politic will be more than compensated for by not having our children and grandchildren live under the rule of those Rethuglican bastards.
The ObamaCare tax hike that loses five times what it Brings in.Passing a bill to see what is in it sometimes isn’t a smart move but it’s the way democrats are.
the power and money in this country is going to the statist just like in commie russia....contracts and loans only to those kneeling before the rat party....best benefits to the govt class....probably a draft of only non-rats.....
thanks American voters....
but I'll harp on it again....when you vote for third party you're letting more and more rats control us....and you can see where thats gotten us....
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very sick. This helps explain the Waxman trials. Because of SEC rules -businesses had to disclose Obmacare costs right away. Direct cause and effect to the bill. They will now try to change the message. --somewhat related - the uptick in racial name calling, seems like a memo was put out by left.
Option 5 is to dump all employees onto the government system where workers will receive government subsidies to help pay premiums. The corporation is penalized $2,000 per year for each employee not insured. The penalty is waived for the first 30 employees.
If it hurts America it is good for 0bama! We seem to be stuck with him. The fact that he can be black really complicates the situation and it really is the perfect storm on America.
You wanted “Hope and Change” America.
Bend over.
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