An association representing 300 large corporations urged President Obama and Congress on Monday to repeal a provision of the health care overhaul that prompted AT&T, Caterpillar and other companies to announce substantial charges for the current quarter.
The association, the American Benefits Council, said the provision — which reduces the tax deductions for companies with drug coverage for their retired employees — would deal a significant blow to corporate profits and would discourage companies from hiring more workers.AT&T announced last week that it was taking a $1 billion charge because of the provision. Deere & Company announced a $150 million charge, Caterpillar a $100 million charge, and 3M a $90 million charge.
Thing is, as Steven Greenhouse points out in his report for the New York Times, the provision which reduces the tax deductions these corporations are carping about doesn't even take effect for another four years. And they've gone so far as to say, aw gee, they'll probably have to cut jobs. All of this is disputed by the Business Roundtable which points out that health care reform "would reduce insurance cost trends for businesses by more than $3,000 for each employee over the next 10 years."
I bet if Deere and ATT and the rest were to pare back their top managements' outrageous salaries and benefits back just a teensy bit they could cover quite a chunk of their loss of tax deductions.
So weep no tears for corporate whiners. A wink and a sneer for their chutzpa is all they deserve.
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