And The Bullying Begins

[boedicca]

Companies which are legally required to provide GAAP compliant financial statements to the SEC are now being order by Henry Waxman to justify their accounting of how ObamaCare will affect them.

Waxman doesn't like it - and he's going to harangue them into submission, if he can.

Rep. Henry Waxman, chairman of the House Committee on Energy and Commerce, has summoned some of the nation's top executives to Capitol Hill to defend their assessment that the new national health care reform law will cost their companies hundreds of millions of dollars in health insurance expenses. Waxman is also demanding that the executives give lawmakers internal company documents related to health care finances -- a move one committee Republicans describes as "an attempt to intimidate and silence opponents of the Democrats' flawed health care reform legislation."

On Thursday and Friday, the companies -- so far, they include AT&T, Verizon, Caterpillar, Deere, Valero Energy, AK Steel and 3M -- said a tax provision in the new health care law will make it far more expensive to provide prescription drug coverage to their retired employees. Now, both retirees and current employees of those companies are wondering whether the new law could mean reduced or canceled benefits for them in the future.

The news is an embarrassment for Democrats. As President Obama and congressional leaders tout the purported benefits of the new health care law, some of the nation's biggest companies are saying it will mean higher costs and fewer benefits -- not exactly what Democrats want to hear in the days after their historic victory.

So Waxman has ordered the executives to explain themselves at an April 21 hearing before the Energy and Commerce Committee's investigative subcommittee. That subcommittee just happens to be chaired by Rep. Bart Stupak, the Michigan Democrat who held out his vote on health care reform until a few hours before final passage on March 21, giving the bill's opponents the unfounded hope that he might vote against it.

Waxman's demands came Friday in letters to several executives. "After the president signed the health care reform bill into law, your company announced that provisions in the law could adversely affect your ability to provide health insurance," Waxman wrote to Randall Stephenson, chairman and CEO of AT&T. A few hours before Waxman sent his letter, AT&T announced it will take a $1 billion charge against earnings because of the tax provision in the new health bill. AT&T also said it will be "evaluating prospective changes" to its health care benefits for all workers.

Waxman's letter suggests he does not accept the company's decision. "The new law is designed to expand coverage and bring down costs, so your assertions are a matter of concern," Waxman wrote to Stephenson, in addition to letters to Verizon CEO Ivan Seidenberg, Caterpillar CEO James Owens, and Deere & Company CEO Samuel Allen. The companies' decisions, Waxman wrote, "appear to conflict with independent analyses."...

Democrats threaten companies hit hard by health care bill | Washington Examiner

 

[Zander]

Nothing like shooting the messenger! The Democrats were hoping that ObamaCare would be like boiling a frog - by the time you realized the water was getting hot - it would be too late to repeal. Fortunately, this legislation is so bad, so full of jerry-rigged bullshit and kickbacks, so ill conceived and poorly designed, that the bad news is already rolling in......I will be very interested to hear the court's take on the mandate to purchase insurance.

 

[Luissa]

So you think providing proof is a bad thing?

 

[California Girl]

Where is truthmatters to provide us with facts?

 

[boedicca]

So you thinking providing proof is a bad thing?

The companies are required to provide audited financial statements to the SEC. We already have regulations and agencies in place to handle this. If there is a problem, the SEC and the IRS have jurisdiction.

The only reasons for this issue to come before Congress is to engage in a political witch hunt, grand standing, and making an example of these companies in order to intimidate others.

I don't believe Waxman is a Certified Public Accountant nor qualified to perform an audit. If you have evidence to the contrary, please provide it.

 

[boedicca]

Where is truthmatters to provide us with facts?

 

[Skull Pilot]

Kind of reminds me of the fucking government locking the CEOs of the top 9 banks in a room and telling them that they will take government money whether they want to or not.

 

[boedicca]

Indeed. Abuse of Power by whomever holds it is Abuse of Power.

 

[Zander]

So you think providing proof is a bad thing?

The proof is in the accounting Luissa. Accounting rules require that corporations immediately restate their earnings to reflect the "present value" of their long-term health liabilities, including higher tax burden. Should AT&T lie to the SEC so that the Democrats can live in fantasy world a bit longer?? Would that make you feel better? Democrats don't like what their bill is doing in the real world, so they now want to intimidate CEO's into keeping quiet.

It is not just AT&T either - Deere & Co., $150 million; Caterpillar, $100 million; AK Steel, $31 million; 3M, $90 million; and Valero Energy, up to $20 million. Verizon has also warned its employees about its new higher health-care costs, and there will be many more in the coming days and weeks. Do you think all of these corporations are just making this shit up?

 

[boedicca]

And Medtronics has said it will need to lay off 1,000 employees (less innovations in pace makers, insulin pumps etc.). Oh Goody.

 

[blu]

the session should be fucking awesome. I am already looking forward to the spin put on by cnn and msnbc about it.

 

[Mr.Fitnah]

Kind of reminds me of the fucking government locking the CEOs of the top 9 banks in a room and telling them that they will take government money whether they want to or not.

Tyranny and fascism.

 

[code1211]

And Medtronics has said it will need to lay off 1,000 employees (less innovations in pace makers, insulin pumps etc.). Oh Goody.

If Medtronic was the only company on Earth that made Pace makers and the like, it wouldn't make much difference. I know of a couple in the US that compete, but those off shore are going to love this.

I wonder what else the Dems are planning to completely shut down any manufacturing that survives this.

Might be a good time to buy stock in this company:

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[Immanuel]

So you think providing proof is a bad thing?

No, but I'm no fan of strong-arm tactics to get it either.

I wonder how many of those companies and executives will receive audit letters in the mail shortly as well.

Immie

 

[uscitizen]

My question is does this fall under GAAP requirements/guidelines for corporations?

 

[boedicca]

My question is does this fall under GAAP requirements/guidelines for corporations?

Yes. It does. It is proper GAAP accounting - which is why the companies are taking the a charges. Sarbanes Oxley also made the controls and reporting processes much more onerous - a company which didn't take this charge once it became aware of the change could be prosecuted, with the CEO & CFO facing fines and or jail time.

It's shameful, but hardly surprising, that our current government doesn't understand the real world implications, including financial reporting, of the burdens it is placing on the private sector.

More on the bullying campaign:

On Friday White House chief of staff Rahm Emanuel and Obama senior advisor Valerie Jarrett were calling the CEOs and Washington office heads of the companies that took the financial hits and attacked them for doing so. One Washington office head said that the White House calls were accusatory and "downright rude."

The companies are taking the charges because in 2013 they will lose a tax deduction on tax-free government subsidies they have had when they give retirees a Medicare Part D prescription-drug reimbursement. Many of these companies have more than 100,000 retirees each. AT&T may have more than three-quarters of a million retirees to cover.

"Most of these people [in the Administration] have never had a real job in their lives. They don't understand a thing about business, and that includes the President," says a senior lobbyist for one of the companies that announced the charge. "My CEO sat with the President over lunch with two other CEOs, and each of them tried to explain to the President what this bill would do to our companies and the economy in general. First the President didn't understand what they were talking about. Then he basically told my boss he was lying. Frankly my boss was embarrassed for him; he clearly had not been briefed and didn't know what was in the bill."

The American Spectator : Obama in Rude Denial


It's going to get much uglier.

 

[Claudette]

My question is does this fall under GAAP requirements/guidelines for corporations?

Yes. It does. It is proper GAAP accounting - which is why the companies are taking the a charges. Sarbanes Oxley also made the controls and reporting processes much more onerous - a company which didn't take this charge once it became aware of the change could be prosecuted, with the CEO & CFO facing fines and or jail time.

It's shameful, but hardly surprising, that our current government doesn't understand the real world implications, including financial reporting, of the burdens it is placing on the private sector.

More on the bullying campaign:

On Friday White House chief of staff Rahm Emanuel and Obama senior advisor Valerie Jarrett were calling the CEOs and Washington office heads of the companies that took the financial hits and attacked them for doing so. One Washington office head said that the White House calls were accusatory and "downright rude."

The companies are taking the charges because in 2013 they will lose a tax deduction on tax-free government subsidies they have had when they give retirees a Medicare Part D prescription-drug reimbursement. Many of these companies have more than 100,000 retirees each. AT&T may have more than three-quarters of a million retirees to cover.

"Most of these people [in the Administration] have never had a real job in their lives. They don't understand a thing about business, and that includes the President," says a senior lobbyist for one of the companies that announced the charge. "My CEO sat with the President over lunch with two other CEOs, and each of them tried to explain to the President what this bill would do to our companies and the economy in general. First the President didn't understand what they were talking about. Then he basically told my boss he was lying. Frankly my boss was embarrassed for him; he clearly had not been briefed and didn't know what was in the bill."

The American Spectator : Obama in Rude Denial


It's going to get much uglier.

Totally agree.

Barry Boy got elected with absolutely no qualifications whatsoever. Should anyone be surprised that he knows zilch about business??

The only thing he's worried about is furthering his agenda. I don't think he gives a rats ass what the economy does or if jobs are created as long as his left wing aganda gets passed.

 

[boedicca]

He's counting on being long gone before the full consequences are felt.

There is one thing he forgot: the unintended consequences of enormously complicated legislation that Congress did not bother to read before passing. It's already starting to come apart at the seams.

 

[code1211]

He's counting on being long gone before the full consequences are felt.

There is one thing he forgot: the unintended consequences of enormously complicated legislation that Congress did not bother to read before passing. It's already starting to come apart at the seams.

Hiring temps was already a rampant device used by companies to avoid bringing on full time employees and the accompanying benefit costs. When 20 to 35% of your payroll expense is benefits, that turns into a big ------- deal. The clueless in the administration are outraged that companies see the problem coming and are taking steps to avoid another melt down.

They enact tax laws and are surprised that people have read the laws. I suppose reading law is not understood by those who simply vote as they are told to vote by other people who have been told how to tell them. If they don't read law before it's passed, how could they possibly expect anyone to read it after ti's passed?

The Clueless from on high don't get it, they'll never get and, by now, the cows could program a VCR. Apologies to "City Slickers". The cows were smarter than these dolts.

The only people with permanent, full time jobs with benefits will very soon be those who run temporary agencies. There might even be a temporary agency to staff these. The only entities to provide benefits in the near future will be the Federal government, Massachusets and Tennessee.

 

[chanel]

My question is does this fall under GAAP requirements/guidelines for corporations?

Yes. It does. It is proper GAAP accounting - which is why the companies are taking the a charges. Sarbanes Oxley also made the controls and reporting processes much more onerous - a company which didn't take this charge once it became aware of the change could be prosecuted, with the CEO & CFO facing fines and or jail time.

It's shameful, but hardly surprising, that our current government doesn't understand the real world implications, including financial reporting, of the burdens it is placing on the private sector.

More on the bullying campaign:

On Friday White House chief of staff Rahm Emanuel and Obama senior advisor Valerie Jarrett were calling the CEOs and Washington office heads of the companies that took the financial hits and attacked them for doing so. One Washington office head said that the White House calls were accusatory and "downright rude."

The companies are taking the charges because in 2013 they will lose a tax deduction on tax-free government subsidies they have had when they give retirees a Medicare Part D prescription-drug reimbursement. Many of these companies have more than 100,000 retirees each. AT&T may have more than three-quarters of a million retirees to cover.

"Most of these people [in the Administration] have never had a real job in their lives. They don't understand a thing about business, and that includes the President," says a senior lobbyist for one of the companies that announced the charge. "My CEO sat with the President over lunch with two other CEOs, and each of them tried to explain to the President what this bill would do to our companies and the economy in general. First the President didn't understand what they were talking about. Then he basically told my boss he was lying. Frankly my boss was embarrassed for him; he clearly had not been briefed and didn't know what was in the bill."

The American Spectator : Obama in Rude Denial


It's going to get much uglier.

Totally agree.

Barry Boy got elected with absolutely no qualifications whatsoever. Should anyone be surprised that he knows zilch about business??

The only thing he's worried about is furthering his agenda. I don't think he gives a rats ass what the economy does or if jobs are created as long as his left wing aganda gets passed.

It may be that Barry is smarter than some think. Destroying the economy may be exactly what's needed to "fundamentally change" this country. In fact, I bet there are left wingnuts on this board who would agree. "Beat those fat cats down!!!!"

The only thing they haven't figured out is when half the country is unemployed and the other half is on the govt teat, who will pay the bills?