Submitted By Todd on March 30th at 3:08pm
Add Prudential to the list of companies taking write downs to account for their financial hit under Castro Care.
Prudential Financial (PRU) became the latest company to detail the financial impact of President Barack Obama’s health-care overhaul, saying Tuesday it has taken a $100 million charge in the current quarter due to lower tax deductions related to the law.Also hitting business is the tax on medical equipment. Senator Scott Brown was on Fox and Friends this morning with Richard Packer, the CEO of Zoll Medical Corporation, a medical manufacturing company. Scott explained why new taxes in the health reform law are a problem.
Right now, the medical device company tax is one example. There are a whole host of other tax increases and cost increases and, you know, I've asked the president and the administration and all the people that are pushing this, you know, to do it better. Let's do it right. Let's do it better and stop taking the victory laps and stop with the rhetoric and let's get back down to business.Back to the lost tax deductions on retirees drug benefits, there are others besides Prudential which are making the required accounting adjustments.
Caterpillar estimates, for example, that Obamacare will cost it $100 million; John Deere faces expenses of $150 million; 3M, $90 million; AK Steel, $31 million; Valero, $20 million. And then there's AT&T, which is marking its balance sheet down by a whopping $1 billion. All in all, the Wall Street Journal estimated a $14 billion haircut for these corporations.
Congress is furious over the embarrassing response from corporate titans, but they're only doing what's required under accounting rules passed in response to the Enron disaster. CEO's of the offending firms have even been ordered to appear before a committee chaired by Congressman Henry Waxman next month to explain their responsible business practices.
By contrast, Waxman and many of his fellow Democratic leaders in Congress have used every government accounting and budget gimmick at their disposal to deceive Americans for the last year about the true costs of Obamacare. These Washington politicians have no business lecturing CEOs on honesty in accounting.
The list of companies joining in by the time of the hearing may be so large that the hearings will have to be canceled for fear of adding to the visibility of the announcements, which amount, effectively, to a big tax increase for the average American. The moneys coming from somewhere.