Thanks Barack… Obamacare Costs Caterpillar Inc. $100 Million This Quarter
Nice work, democrats.
The dem’s nationalized health care bill will cost ailing Caterpillar Inc. $100,000,000 this quarter alone.
The Wall Street Journal reported:
Caterpillar Inc. said Wednesday it will take a $100 million charge to earnings this quarter to reflect additional taxes stemming from newly enacted U.S. health-care legislation.
The world’s largest construction equipment manufacturer by sales, warned last week that provisions in the legislation would subject the company to federal income taxes on the subsidies it receives for providing prescription drug benefits for its retirees and their spouses.
Since the Medicare Part D program was enacted in 2003, Peoria, Ill.-based Caterpillar and more than 3,500 companies that already provided drug-benefit expenses to retirees have received tax-free subsidies as an incentive to maintain their drug programs.
The subsidies average $665 per person covered under a company-sponsored prescription program, according to benefits consultants Towers Watson.
About 40,000 Caterpillar retirees receive company-sponsored drug benefits, which are more generous than Medicare’s drug plan, which requires recipients to pay some out-of-pocket expenses.
The charge is expected to be a one-time cost, but Caterpillar has argued that higher taxes and other potential cost increases related to insurance coverage mandates in the legislation will hinder the company’s recovery this year after a 75% plunge in income during 2009.