In a letter Thursday to House Speaker Nancy Pelosi (D-Calif.) and House Republican Leader John Boehner of Ohio, Caterpillar urged lawmakers to vote against the plan "because of the substantial cost burdens it would place on our shareholders, employees and retirees."
What this means, as reported here, is that companies big and small are going to look at the additional costs imposed on them and figure out which costs can they pass on to their customers and which costs do they eat. One way to eat those costs is to either not hire new employees or to shed some of the employees they have.
In the competitive big equipment world this will be a difficult calculation for Caterpillar. They face stiff competition around the world.
Combine these predictable actions by companies along with reduced consumer spending as taxes begin to reduce take-home pay and you have a prescription for poor economic activity and even poor long-term economic outlook.
Resistance!
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