Even as Obama contemplates his success to himself, the bad news keeps rolling in. This week, immediately after the signing of the most intrusive and socialist legislation to ever become law, major corporations, as required by accounting standards, began making disclosures of the effect of the law on their bottom lines. And it is not good.............see here in the WSJ.
This wholesale destruction of wealth and capital came with more than ample warning. Turning over every couch cushion to make their new entitlement look affordable under Beltway accounting rules, Democrats decided to raise taxes on companies that do the public service of offering prescription drug benefits to their retirees instead of dumping them into Medicare. We and others warned this would lead to AT&T-like results, but like so many other ObamaCare objections Democrats waved them off as self-serving or "political."
On top of AT&T's $1 billion, the writedown wave so far includes 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.
Hard to write a script that says that will be good for the economy.
Be sure and tell your favorite democrat about this the next time they moan about the economy.
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