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Sunday, March 28, 2010

A government of dunces

Obamacare faces immediate corporate blowback:
One of the "cute tricks" passed with Medicare Part "D" (by George W. Bush) was a "tax credit" for corporations who provided health care to retirees from their firms. This too was a distortion - an intentional one put into that bill to "buy off" some key Reps and Senators to insure passage of Medicare Part "D" (the biggest boondoggle and scam in the history of the Republic - until President Obama signed this piece of crap legislation.)

But this legislation repeals that little ditty in the Medicare Part "D" law. Remember, the Democrat talking points were that this bill would "lower your costs" and "make health care more affordable." It was also called a "jobs bill" - that is, that this bill would create jobs.

Within hours corporations announced intent to recognize the repeal of this exemption - via 8Ks filed with the SEC. This was not a surprise - Caterpillar had warned the Administration, as had other firms, that the bill as written would increase their costs and that they would have to recognize those forward costs.

Securities laws require firms to disclose material changes when they are realized - which in this case means when the bill was signed into law, since they had already analyzed the bill and it's impact. Legally, these companies are obligated to file the 8Ks disclosing these charges.

The Administration and Democrats generally ignored these folks when they warned of this impact before the bill was passed.... Well, the corporations weren't lying, and now the 8Ks are flying. Caterpillar has announced an intent to take a $100 million non-cash charge, John Deer $150 million, and AT&T a whopping $1 billion.
We are indeed amused. Obama won't prove to be the worst president ever, as Wilson and Lincoln almost surely have first and second positions locked down, but he is definitely one of the most comedic. And I suspect that he's still only scratching the surface of his potential.

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