Friday, April 02, 2010

Verizon Joins AT&T in Booking Costs From Health-Care

So this health care bill will lower the deficit?

It won't, but even if it does how will it do that?
By destroying our businesses...
Good trade off...thanks


Jim said...

Not sure if you actually understand what's going on here. I doubt you do because you are prone to look at the headline and spin and accept it at face value.

In this case these multi-billion dollar companies have been getting free money from you, the tax payer, and not having to count that free money as income for tax purposes. But they could use that money to help retirees pay for medications and EXPENSE it on the books.

Now they have to count your free money as taxable income. These huge corporations lose a sweetheart deal.


The Game said...

you hate all these companies that give most people a will cost lots of jobs

Jim said...

I don't get it. Why do individuals have to be self-reliant, but multi-billion dollar corporations can't live without a welfare check? And that's OK with you?

BTW, I happen to work for a multi-billion dollar company myself. I certainly don't hate it.

PCD said...

Jim, maybe the multi-billion dollar company ought to let you go in a cost saving move. It might serve as a lesson to you.

Jim said...

PCDummy, my multi-billion dollar corporation is one of the best-run companies of its kind and actually thinks ahead more than quarter to quarter.

What made you so nasty? Can't answer my question any other way? Interesting that I ask a legitimate question on policy and political philosophy to elicit a discussion on political thought, and you answer it with basically a fart.

Jim said...

From the NY Times:

"Those look like staggering amounts until one understands that they don't require any immediate cash payments and that the added taxes will be paid out slowly -- over perhaps 30, 40 or more years, depending on a company's retiree plan.

"For every $100 the company spends on retiree drug benefits, Medicare sends it a subsidy payment of $28. On top of that, the companies got a rare double tax break. The $28 subsidy is tax-free, and the company was allowed to deduct the entire $100 as a business expense.

"The new health care reform law has left the 28 percent subsidy intact and continued to exempt it from taxation. But companies will no longer be allowed to deduct the subsidy as if it were an expenditure of their own.

"That seems a reasonable way to generate a bit more revenue to pay for covering the uninsured. It also treats all employers equally instead of favoring profit-making firms with a special deduction that is of no value to nonprofit organizations, state and local governments, or firms that lose money."

I don't think this will be "destroying our business."