Companies hit by new taxes due to new healthcare bill

Caterpillar Takes Hit on Health Care
http://online.wsj.com/article/SB1000142 ... And_Policy

Caterpillar Inc. said Wednesday it will take a $100 million charge to earnings this quarter to reflect additional taxes stemming from newly enacted U.S. health-care legislation.

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The world’s largest construction equipment manufacturer by sales, warned last week that provisions in the legislation would subject the company to federal income taxes on the subsidies it receives for providing prescription drug benefits for its retirees and their spouses. …

The charge is expected to be a one-time cost, but Caterpillar has argued that higher taxes and other potential cost increases related to insurance coverage mandates in the legislation will hinder the company’s recovery this year after a 75% plunge in income during 2009.

“From our point of view, a tax increase like this cannot come at a worse time,” said Jim Dugan, a Caterpillar spokesman.

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Deere Projects $150 Million Hit From Health Care Reform
http://www.cnbc.com/id/36032946/

Farm equipment maker Deere expects after-tax expenses to rise by $150 million this year as a result of the health care reform law President Barack Obama signed this week.

I think there will be tax increases to get upset about, but big business can cry me a river. If they don't pay it, us working folks will.

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but big business can cry me a river

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Why? You do realize that both these companies were started by a blacksmith and a farmer? Hardly the kind of corparate fat cats you want to propagate as the villians. Big business is not the villian here. It's the people that voted for Obama simply out of the media blitz and hatred for the right. Now we are the verge of being taxed to death so the people who don't want to push themselves can have the same as the people who do. It's pretty sad that not only will our taxes go up but goods and services will spike as well. This is also the beginning I think once the honeymoon is over and the real numbers come out we are going to really be shocked at what has been passed. Pelosi was so blinded by the power grab she failed to see that the real way to give health care to people is to ease the tax burden on the businesses of America by getting them to hire more workers and give them all health care. Not the opposite.

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Originally Posted by GothamSpotter

I think there will be tax increases to get upset about, but big business can cry me a river. If they don't pay it, us working folks will.

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This perception is part of the problem.

Do you think for a second that these costs aren't going to be passed on to the consumers or the employees of said business's?

How about we don't forgive one or two of those forgein debts & dump the money into healthcare instead of taxing those that are on the brink of collapse & cutting in areas that stretched thin.

I'm all for some sort of reform & a public option but not through back door deals & shaddy legislation.

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Originally Posted by GothamSpotter

I think there will be tax increases to get upset about, but big business can cry me a river. If they don't pay it, us working folks will.

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Higher taxes will force companies to either raise product prices, and/or lead to employee layoffs.

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do you think for a second that these costs aren't going to be passed on to the consumers or the employees of said business's?

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Higher taxes will force companies to either raise product prices, and/or lead to employee layoffs

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Of course they are, this is not even a issue. The logical way to proceed was to get businesses both big and small and hiring. By easing the tax burden on them. Then if you want to force them to give full time employees health care I am all for it but give them a tax credit. Help them, don't hurt them.

I understand that they'll lay people off and charge higher prices, but there has to be a balance somewhere, and right now that balance is leaning way to hard to our end. What I'm really saying is we're screwed either way. :-)

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Originally Posted by GothamSpotter

I understand that they'll lay people off and charge higher prices, but there has to be a balance somewhere, and right now that balance is leaning way to hard to our end. What I'm really saying is we're screwed either way. :-)

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Got ya, can't argue with that....

You know what's funny, I would not be against some sort of public option, as long as they merge every governmental health care plan into one. Can't believe people think another governmental plan is going to solve our problems.....

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can't believe people think another governmental plan is going to solve our problems...

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I can. Obama has actually pulled the biggest magic trick on us. He fooled the independent voters into voting for him by saying he would govern from the middle and once he got in did an about face and went hard left. Knowing that he had the congress and could wheel and deal to get the blue dogs he needed to flip. He got the timing perfect as well. It's really a great move but unfortunately this power grab will have long lasting consequences.

I wonder how much greater revenue a Flat Tax might produce? Granted it is not a "fair" tax, but it does have its merits.....