Posted by
Defend America on Wednesday, April 28, 2010 5:16:37 AM
Via Ed Morrissey:
WASHINGTON — When major companies declared that a provision of the new
health care law would hurt earnings, Democrats were skeptical. But
after investigating, House Democrats have concluded that the companies
were right to tell investors and the government about the expected
adverse effects of the law on their financial results.
At issue is a section of the law that eliminates a tax break available
to companies that provide drug benefits to retirees as part of their
insurance coverage. The tax change, expected to generate $4.5 billion
of revenue over the next 10 years, will help offset the cost of
providing coverage to the uninsured.
Within days after President Obama signed the law on March 23, companies filed reports with the Securities and Exchange Commission, saying the tax change would have a material adverse effect on their earnings.
The White House suggested that companies were exaggerating the effects
of the tax change. The commerce secretary, Gary F. Locke, said the
companies were being “premature and irresponsible” in taking such
write-downs.
Representative Henry A. Waxman of California and Bart Stupak of Michigan, both Democrats, opened an investigation and demanded that four companies — AT&T, Caterpillar, Deere and Verizon — supply documents analyzing the “impact of health care reform,” together with an explanation of their accounting methods.
The documents — hundreds of pages of e-mail messages and financial
worksheets — include large amounts of data that substantiate the
companies’ concerns. They have reignited a battle over the law in
Congress.
http://www.nytimes.com/2010/04/27/business/27health.html?ref=business