Change the Subject!
So, now we hear of the poor Democratic members of Congress, complaining people are harassing them, and maybe even threatening violence.
Here's my guess folks, they are getting the same number of those e-mails and crank calls today as they did last Friday. The difference, today they are good fodder to change the subject from the Health Care Takeover Act to anything else.
Why? Well, the facts are getting out, and the heat is getting turned up. No one told the folks who work at Caterpillar, John Deere and Verizon that their companies would take a hundred million dollar tax hit this year, and have to lay off thousands to compensate. Those thousands are probably going to be mad as hell.
Why are they taking that tax hit this year? Well, they did the right thing a few years back and provided their retirees with prescription drug coverage. For that, they get about $665 per year from the feds; which trims the government cost for drugs by over $550 per retiree. So it's a win -win the government saves money by giving the subsidy, and the retirees end up with better prescription drug coverage.
Now, though, under the new law, that subsidy is considered business income, and taxed at 35%. So the companies will take a huge hit, and be required to restate earnings because of it. But; to them; there is an easy way out. They are going to drop the drug coverage for the retirees, quit taking the subsidy, and not have the tax burden of it. Instead, the tax payers get the full hit for the retiree drug coverage, and the retirees have to enroll in the Medicare plan now.
This will of course increase the cost of the Health Care bill by billions, and everyone in DC will say "Never saw that coming".
So much for keeping what you've got if you like it. Just another example of how Congress understands no law it passes; and no lawyer can litigate the law of unintended consequences.
So remember, when you hear Congressman Dorkus D-Wherever whine about threats, it's not really about a new threat, it's to get folks to quit talking about the piece of crap bill he or she voted for.
Here's my guess folks, they are getting the same number of those e-mails and crank calls today as they did last Friday. The difference, today they are good fodder to change the subject from the Health Care Takeover Act to anything else.
Why? Well, the facts are getting out, and the heat is getting turned up. No one told the folks who work at Caterpillar, John Deere and Verizon that their companies would take a hundred million dollar tax hit this year, and have to lay off thousands to compensate. Those thousands are probably going to be mad as hell.
Why are they taking that tax hit this year? Well, they did the right thing a few years back and provided their retirees with prescription drug coverage. For that, they get about $665 per year from the feds; which trims the government cost for drugs by over $550 per retiree. So it's a win -win the government saves money by giving the subsidy, and the retirees end up with better prescription drug coverage.
Now, though, under the new law, that subsidy is considered business income, and taxed at 35%. So the companies will take a huge hit, and be required to restate earnings because of it. But; to them; there is an easy way out. They are going to drop the drug coverage for the retirees, quit taking the subsidy, and not have the tax burden of it. Instead, the tax payers get the full hit for the retiree drug coverage, and the retirees have to enroll in the Medicare plan now.
This will of course increase the cost of the Health Care bill by billions, and everyone in DC will say "Never saw that coming".
So much for keeping what you've got if you like it. Just another example of how Congress understands no law it passes; and no lawyer can litigate the law of unintended consequences.
So remember, when you hear Congressman Dorkus D-Wherever whine about threats, it's not really about a new threat, it's to get folks to quit talking about the piece of crap bill he or she voted for.
Labels: Caterpillar, Congress, Health Care Reform, John Deere, ObamaCare, Taxes, Verizon
posted by Crazy Politico at 11:43 AM
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