Obamacare: Cuts wages, benefits, employment and production
Posted: Sat Mar 27, 2010 6:36 am
AT&T to Book $1 Billion Cost on Health-Care Reform
A simple but effective economic lesson for Obama and the Democrats but at the expense of the working class. Most others would not have made this same mistake.
“Companies like AT&T, that have large employee bases, are going to have higher health-care costs and, therefore, lower earnings unless they can negotiate something or offer less to their employees,” said Chris Larsen, an analyst at Piper Jaffray & Co. in New York, who rates AT&T shares “overweight” and doesn’t own any himself.
AT&T previously received a tax-free benefit from the government to subsidize health-care costs for retirees, who would otherwise be on a Medicare Part D plan. Under the new bill, AT&T will no longer be able to deduct that subsidy.
“As a result of this legislation, including the additional tax burden, AT&T will be evaluating prospective changes to the active and retiree health-care benefits offered by the company,” the carrier said in the filing.
A simple but effective economic lesson for Obama and the Democrats but at the expense of the working class. Most others would not have made this same mistake.