New York (CNNMoney.com) – A growing number of major U.S. corporations are expecting to take tax charges in the first quarter related to the recently enacted health care reform law.
But while some companies are fretting about the charges, defenders of the law say the new rules merely close a loophole that allowed a double-dip benefit.
On Wednesday, Boeing became the latest company to disclose that the law, which was signed by President Obama last week, will negatively impact its financial results.
The aeronautics company expects to take an income tax charge of roughly $150 million, or 20 cents per share, in the first quarter of 2010 as a result of the law.
please see Financial Standard Accounting Board's 1990 statement 106...requiring businesses to immediately re-state their earnings in light of their expected future retiree health liabilities....these companies are just obeying the law...Dems can whine all they want...but it is the law......so just how is that hope and change workin; out for ya??
Basicly this ill conceived law will drive more jobs overseas.
So the federal government closed a loophole that was actually costing the taxpayers money, and we are supposed to be upset? I say they should do more of this.
Good job obama. We are so proud of what you have DONE. This is a big Sucking deal.
Obummie to business. Come to testify. If I don't twist your arm enough to get you to lie to your stock holders, I will have to take your company over and fire you. Hey comrade, if you resist, I'll line you up against the wall and shoot you. Welcome to Obummie's Socialist States of America!!!
What do you think these companies are going to do with all of these losses? They are going to lay people off by the millions! The White House expected job gains for March around 50,000. Well March came and went and there was a job loss of 25,000! and that is with all the ACORN census workers hired to rig the census count. This might be the worst president we have ever had.
Twenty-first century corporate accounting can produce any result desired. Want to lose money? Badda-bing-badda-boom, you're losing money. Want to show a profit? Presto-change-o, you're in the black.
Q: How can you tell when a CEO is telling the truth?
A: No one will ever find out.
Wow this is a big surprise. Democrats pass the most major peice of social legislation with unemployment over 10% and without listening to the majority of Amercans. Employers state their writedowns as mandated by law that basically paints the picture of major losses and House DEMOCRATS & Henry Waxman haul them before Congress. This is PATHETIC. The numbers are huge – Catapillar $100M, AK Steel $31M, Verizon, Valero $20M, AT&T 1B, Deere & Co. The rest are too d@mn scared to say anything about the adverse consequences of Congress as they have businesses to run.
so companies will make 5 gazillion in profits instead of 8. WAAAHHH.
So, under the old system, companies got to write off something that wasn't taxed in the first place?!?! Thank you for closing this loophole. As an average citizen, I don't get to double dip. Corporations shouldn't get special treatment either.
They will whine a bit, adjust to it and move on. This is a non-issue.
these guys have been double dipping since the Republicans gave them a 28% subsidy to pay for employee prescription drugs, then give them a tax credit for the WHOLE amount of the benifit.
If they want the taxpayer to subsidize them, then let's at least limit them to ONE DIP.
Poor babies...that's the least you can do is give your employees decent healthcare. I'm sure the executives can afford to shave a few pennies off their profit margins.
Boy, that health scare reform isn't sounding quite as rosy now, is it.
Sounds like it's having a pretty negative impact......
This is what happens when you concoct a nearly 3000 page bill to revamp nearly 20% of the US economy, AND KEEP IT SECRET UNTIL ITS PASSED.
I'm sure this type of thing will be repeated many, many times as all the BS in this fiasco comes to light.
Remember in November America, the DEMOCRATS did this to the country!
This health care mess will increase taxes on companies, which we all know will pass the cost down to the consumer. Thanks Obama for making my life a little bit tougher.
These companies should wait until they take the loss before turning their fears into headline news.
And yet another company disclosing the millions of dollars the health care reform is going to cost them. Is there anyone who really thinks that cost isn't going to trickle down to the consumer? Better believe it!
I think that it is only fair.........That all of the Obama drones who supported this health care disaster should be the first to be layed off, when the companies are forced to do so.
Look in the parking lots for the bumper stickers supporting the "Big O"-–and PLEASE make sure that they are fhe first to be layed off.
The top 5 executives at Boeing made a combined $37,814,337 in 2007 (CEO made about half of it). Average salaries are about $76K. The company generally has NET income of approximately $1B per QUARTER. Sorry if I'm not weeping on its behalf.
So they're whining about losing the tax deduction on the FEDERAL SUBSIDY they received for offering a prescription drug plan? Sure, there's a legitimate criticism...
So what's the big deal, it's just those evil, greedy, capitalistic corporations? So what if they come up short a few million dollars. That's only a few thousand jobs they can't fund.
And with each company taking these charges come fewer jobs. Oh, but it's pretty clear that jobs don't matter to Obama. At least, not in the private sector. All that matters is growing government. If everyone out of work today can get a government job, Obama will be a happy camper.
Where is the free market? You have super big companies, that make close to if not past a billion a year, upset b/c they are losing their corporate welfare, of a tune of 150 million..........
There is a place where looking out for one's bottom line ends, and greed takes over.
We are at that place.
Just in case you are unsure of what a Democrat really is, please read the comments under the Barbara Bush released from the hospital thread. In deed there have never been any Americans in the history of this nation as nasty, mean, and void of decency as current day Democrats. How people who want to murder millions of Americans for their poltical beliefs can fault Bush, Cheney, or Rove is beyond me, but that's lib.
"Even though the federal subsidies were already tax free, employers could still write them off on their income taxes, in addition to writing off their own contribution. The new law maintains the subsidy as a tax-free incentive to employers, but prohibits them from taking it as a deduction."
WOW!!!!! They had a good thing and now it's gone. Of course they will threaten layoffs and all kinds of doom and gloom. Corporations are driven by greed plain and simple. Used to be a company willingly helped its employees and considered them a valuable asset. Now these in your face managers think of employees as a necessary evil who only take money from the company. Its about time these crooks paid their share.