GROWED UP WRONG
Join Date: Apr 2001
Location: The Box Babies Come In
Companies already reporting potential profit loss due to Obamacare
The first two companies to officially announce potential losses stemming from ObamaCare are Iowa's Deere & Co. and Caterpillar from Peoria, Illinois. This is presumably the beginning of a long list of companies that are going to blame the new law for losses in future.
Caterpillar confirmed that it will bear amounts in tune of an estimated $100 million in increased costs for the year 2011. The same melody was sung by, John Deere on Thursday, when he too announced that his company will be shelling out $150 million additionally for 2010 due to the "overhauling" of America's health care and health insurance systems. Deere revealed that the $150 million sum that his company will incur will almost be an 11% pinch from its profits for this year. That is certainly going to hurt.
Deere and Caterpillar have already stated that the new retiree drug coverage tax as a part of the recently passed health reform bill would have a negative impact on both, retirees and companies, which to an extent, is not a wrong notion. Here's how they explain it.
Protesting the then-possibility of the proposed tax, Deere, Caterpillar, Verizon, among others wrote to Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi on December 11, 2009. An excerpt from the letter read, "The change would make the 28 percent subsidy taxable to employers, effectively reducing the value of the subsidy".
"Taxing the subsidy means that more companies will eliminate or reduce the coverage and more retirees will shift to Medicare Part D, which will create more cost for both the government and retirees", the letter said.
For a letter that is coming from the corporate companies, this does make sense, for a change. But, like everything, it has to have a catch somewhere. The catch in this is apparent. Losses to the companies. Simple enough!