AT&T Joins Growing List of Firms That Say Health Care Law Will Cut Into Their Profits
FOXNews.com
AT&T is the latest and biggest company to announce the costly impact that the health care overhaul will have on its bottom line.
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AT&T President and CEO Randall Stephenson, delivers a keynote speech during the CTIA wireless show, Tuesday, March 23, 2010, in Las Vegas.(AP)
AT&T said Friday that it is preparing for President Obama's health care overhaul to cost the telecommunications giant an additional $1 billion in expenses in the first quarter, possibly forcing the company to cut benefits it offers to current and retired workers.
AT&T is the latest and biggest company to account for the financial impact that the health care overhaul will have on its bottom line. It said the tax ramifications related to the legislation that Obama signed Tuesday will force it to take a non-cash charge -- an expense that does not require cash to be paid out but has to be charged against the company's earnings.
Earlier this week, AK Steel Corp., Caterpillar, Deere and Valero Energy announced similar accounting charges, saying the health care law will raise their expenses. On Friday, 3M said it will also take a charge of $85 million to $90 million.
But AT&T's charge is the largest disclosed so far. The other five's combined charges are less than half of the $1 billion that AT&T is planning. And the $1 billion is a third of AT&T's most recent quarterly profit. In the fourth quarter of 2009, the company earned $3 billion on revenue of $30.9 billion.
The sweeping health care legislation that Obama signed into law Tuesday requires companies of a certain size to provide health care coverage to their workers in an effort to expand insurance to some 32 million Americans.
Taxes on some companies are being raised to help defray the cost of the legislation.
AT&T said Friday that the charge reflects changes to how Medicare subsidies are taxed. Companies say the health care overhaul will require them to start paying taxes next year on a subsidy they receive for retiree drug coverage.
Business organizations, such as the U.S. Chamber of Commerce, have slammed the new law, arguing it will hurt companies by adding new costs and additional tax burdens.
Chamber spokesman Blair Latoff said Friday in an e-mail that altering the tax law "will have a negative impact" on companies' cash flows, particularly in the first year of the law's enactment.
Latoff added, "the government will quickly find out that by raising the costs for employers to provide retiree drug plans, they are incenting employers to drop these plans and send their employees to the Medicare program; in other words, the government will no longer pay a portion of their costs…it will pay all of their costs."
Karl Rove, a senior aide to former President Bush and a Fox News contributor, also predicted that more companies will drop their retiree drug plans and "put the entire cost on the federal taxpayer."
"There's no incentive any longer for them to continue to have a cordial relationship with their retirees by continuing to pay most of the cost of their drugs," he told Fox News.
An Obama administration official did not respond to a request for comment on AT&T's announcement but the White House in the past has suggested that companies are exaggerating the impact of the loss because they oppose the new law.
White House spokesman Robert Gibbs said Thursday that the tax law closed a loophole.
Under the 2003 Medicare prescription drug program, companies that provide prescription drug benefits for retirees have been able to receive subsidies covering 28 percent of eligible costs. But they could deduct the entire amount they spent on these drug benefits -- including the subsidies -- from their taxable income.
The new law allows companies to only deduct the 72 percent they spent.
The White House and Democratic leaders in Congress argue that under the old law, companies were in effect getting two deductions, not one, because they were able to deduct from the taxes they pay each year the amount of the subsidy the government was giving these companies to help them out.
AT&T also said Friday that it is looking into changing the health care benefits it offers because of the new law. Analysts say retirees could lose the prescription drug coverage provided by their former employers as a result of the overhaul.
Changes to benefits are unlikely to take effect immediately. Rather, the issue would most likely come up as part of contract negotiations between the company and unions representing its employees and retirees. AT&T is the largest private employer of union workers in the U.S.
Candice Johnson, spokeswoman for the Communications Workers of America, which represents more than 160,000 AT&T workers, said these employees have contracts in place until 2012. An agreement covering retirees also runs through 2012.
AT&T rival Verizon Communications Inc. was among 10 companies that sent a letter to congressional leaders in December warning that their costs would increase with the health care changes. Verizon spokesman Peter Thonis said the company had no comment.
Fox Business' Dunstan Prial, Fox News' James Rosen and The Associated Press contributed to this repot.
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Friday, March 26, 2010
Thursday, March 25, 2010
Dates That Destroyed America
April 9, 1865
This is the date when General Robert E. Lee surrendered the Army of Northern Virginia to U.S. Grant at Appomattox Court House, Virginia. Regardless of where one comes down on the subject of the Civil War, one fact is undeniable: Abraham Lincoln forever destroyed the Jeffersonian model of federalism in America. Ever since, virtually every battle that free men have fought for the principles of limited government, State sovereignty, etc., have all stemmed directly from Lincoln’s usurpation of power, which resulted in the subjugation and forced union of what used to be “Free and Independent States” (the Declaration of Independence). In fact, the philosophical battles being waged today regarding the recent health care debacle (and every other encroachment upon liberty and State power by the central government) have their roots in Lincoln’s tyranny.
July 9, 1868
This is the date when the 14th Amendment was ratified. This amendment codified into law what Lincoln had forced at bayonet point. Until then, people were only deemed citizens of their respective states. The Constitution nowhere referred to people as “US citizens.” It only recognized “the Citizens of each State.” Notice also that citizenship was only recognized among the “several States,” not among people living in non-State territories. Until the 14th Amendment, people were “Citizens of each State.” (Article. IV. Section. 2. Paragraph. 1.) The 14th Amendment created a whole new class of persons: “citizens of the United States.” This false notion of “one nation” overturned the Jeffersonian principle that our nation was a confederated republic, a voluntary union of states.
February 3, 1913
This is the date when the 16th Amendment was ratified, and the direct income tax and IRS were instituted. This was a flagrant repudiation of freedom principles! What began as a temporary measure to support the War of Northern Aggression became a permanent income revenue stream for an unconstitutional–and ever-growing–central government.
April 8, 1913
This is the date when the 17th Amendment was ratified. This amendment overturned the power of the State legislatures to elect their own senators and replaced it with a direct, popular vote. This was another serious blow against State sovereignty. The framers of the Constitution desired that the influence and power in Washington, D.C., be kept as close to the people and states as possible. For example, the number of representatives in the House of Representatives was to be decided by a limited number of voters. In the original Constitution, the ratio of “people of the several States” deciding their House member could not exceed “one for every thirty thousand.” (Article. I. Section. 2. Paragraph. 3.) And when it came to the US Senate, the framers also recognized the authority of each State legislature to select its own senators, thereby keeping power and influence from aggregating in Washington, D.C. The 17th Amendment seriously damaged the influence and power of the states by forcing them to elect their US senators by popular vote. The bigger the State, the less influence the State legislature has in determining its US senator. Senators who answered to State legislators, each answering to a limited number of voters, are much more accountable to the “citizens of the several States” than those who are elected by a large number (many times numbering into the millions) of people. For all intents and purposes (at least in the larger states), US Senators are more like “mini-Presidents” than they are representatives of sovereign states.
December 23, 1913
This is the date when the Federal Reserve Act was passed. This Act placed oversight of America’s financial matters into the hands of a cabal of private international bankers, who have completely destroyed the constitutional principles of sound money and (for the most part) free enterprise. No longer would the marketplace (private consumption, thrift, growth, etc.) be the determinant of the US economy (which is what freedom is all about), but now a private, unaccountable international banking cartel would have total power and authority to micromanage (for their own private, parochial purposes) America’s financial sector. Virtually every recession, depression, and downturn (including the one we are now experiencing) has been the direct result of the Fed’s manipulation (again, for its own purposes and with Washington’s cooperation) of the market.
June 26, 1945
This is the date when the United Nations Charter was signed and America joined the push for global government. Ever since, US forces have spilled untold amounts of blood and sacrificed thousands of lives promoting the UN’s agenda. Since the end of World War II, in virtually every war in which US military forces have been engaged, it has been at the behest of the UN. And it is also no accident that America has not fought a constitutionally declared war since we entered the UN–and neither have we won one.
Furthermore, it is America’s involvement in the United Nations that has spearheaded this draconian push for a New World Order that George H. W. Bush, Henry Kissinger, Tony Blair, Walter Cronkite, et al., have talked so much about. The United Nations is an evil institution that has completely co-opted our US State Department and much of our Defense Department. It is an anti-American institution that works aggressively and constantly against the interests and principles of the United States. But it is an institution that is ensconced in the American political infrastructure. Like a cancer, the UN eats away at our liberties and values, and both major political parties in Washington, D.C., are culpable in allowing it to exert so much influence upon our country.
June 25, 1962, and June 17, 1963
These are the dates when the US Supreme Court removed prayer (‘62) and Bible reading (‘63) from public schools. At this point, these two Supreme Court decisions were the most serious affront to the First Amendment in US history. Think of it: from before a union of states was established in 1787, children had been free to pray and read the Scriptures in school. We’re talking about a period of more than 200 years! Of course, the various State legislatures–and myriad city and county governmental meetings–still open their sessions in prayer, as do the US House and Senate, and even the US Supreme Court. But this same liberty is denied the children of America. There is no question that America has not recovered from these two horrific Supreme Court decisions. In effect, the federal government has expelled God not only from our public schools, but also from our public life! And America has not been the same since.
October 22, 1968
This is the date when President Lyndon Baines Johnson signed the Gun Control Act of 1968. Before this Act, the 2nd Amendment was alive and well in the United States. The Gun Control Act of 1968 turned a right into a privilege and forever forced the American people to bow to the altar of government when seeking to arm themselves. Interestingly enough, this Gun Control Act mirrored Nazi Germany’s Gun Control Act of 1938. In fact, the Gun Control Act of 1968 is almost a verbatim copy of Hitler’s Gun Control Act of 1938.
Our Founding Fathers could never have imagined that governments within the “several States” would ever be allowed to deny the people’s right to keep and bear arms. In fact, it was the attempted confiscation of the firearms stored at Concord, Massachusetts, that triggered the War of Independence in 1775. That the people of Massachusetts would be denied their right to keep and bear arms, as they are today, could not have been foreseen–and would never have been tolerated–by America’s founders.
Yet, most of the hundreds of draconian gun control laws that have been inflicted upon the American people have all come about as a result of the Gun Control Act of 1968.
January 22, 1973
This is the date when the US Supreme Court issued the Roe v. Wade and Doe v. Bolton decisions, which, in effect, legalized abortion-on-demand. These two decisions expunged the Jeffersonian principle that all men are endowed by their Creator with the unalienable right to life (Declaration). Since then, more than 50 million unborn babies have been legally murdered in their mothers’ wombs. Abortion is, without a doubt, America’s national holocaust. It has opened the door to a host of Big Government programs and policies that have resulted in the wanton destruction of human life both in the United States and overseas. It has created an entire industry whose express purpose for existing is the destruction of human life. It has desensitized the conscience and soul of America. Furthermore, it has forced men of decency and good will to finance–with their tax dollars–the unconscionable act of killing unborn children.
And once again, another Jeffersonian principle was eviscerated. He said, “To compel a man to furnish contributions of money for the propagation of ideas which he disbelieves and abhors is sinful and tyrannical.” The Roe and Doe decisions violate this principle in the most egregious manner possible.
October 26, 2001
This is the date when President George W. Bush signed the USA Patriot Act, and the federal government’s war against individual liberty began in earnest. Most of the unconstitutional eavesdropping, snooping, wiretapping, phone call intercepting, email reading, prying, financial records tracking, travel watching, ad infinitum, ad nauseam, by federal police agencies began with the implementation of the Patriot Act. The Department of Homeland Security and the “war on terrorism,” which have resulted in the deaths of tens of thousands of innocent people worldwide, and the usurpation of federal power at home, have all come about as an outgrowth of the Patriot Act. The USA Patriot Act has forever shifted the focus of American law and jurisprudence against constitutional government and individual liberty, toward a police-state mentality. The Patriot Act is even turning our local and State law enforcement agencies into military-style “Jackboots,” where police officers see themselves not necessarily as guardians of the citizenry, but, as often as not, as adversaries, where citizens are deemed to be the “enemy.”
October 17, 2006, and October 9, 2009
These are the dates when President G.W. Bush signed and President Barack Obama re-signed the Military Commissions Act. This Act is the outgrowth of the Patriot Act but has, in effect, terminated the fundamental protections of individual liberty, which are found in the US Constitution and Bill of Rights. For all intents and purposes, the Patriot Act and Military Commissions Act eviscerated the 4th and 5th Amendments, and do serious injury to several others. The Military Commissions Act also expunges the constitutional right of Habeas Corpus.
March 21 and 23, 2010
These are the dates when Congress passed and President Obama signed into law the “Patient Protection and Affordable Care Act,” the so-called “health care reform” bill that we spoke about at the beginning of this column. While Social Security and various Welfare programs have toyed with socialism in the United States, this bill is the largest and most expansive endorsement of socialism in American history. This bill socializes some 18% of the US economy by socializing the health care industry in America. The fallout and ramifications of this bill are going to be horrific.
This is the date when General Robert E. Lee surrendered the Army of Northern Virginia to U.S. Grant at Appomattox Court House, Virginia. Regardless of where one comes down on the subject of the Civil War, one fact is undeniable: Abraham Lincoln forever destroyed the Jeffersonian model of federalism in America. Ever since, virtually every battle that free men have fought for the principles of limited government, State sovereignty, etc., have all stemmed directly from Lincoln’s usurpation of power, which resulted in the subjugation and forced union of what used to be “Free and Independent States” (the Declaration of Independence). In fact, the philosophical battles being waged today regarding the recent health care debacle (and every other encroachment upon liberty and State power by the central government) have their roots in Lincoln’s tyranny.
July 9, 1868
This is the date when the 14th Amendment was ratified. This amendment codified into law what Lincoln had forced at bayonet point. Until then, people were only deemed citizens of their respective states. The Constitution nowhere referred to people as “US citizens.” It only recognized “the Citizens of each State.” Notice also that citizenship was only recognized among the “several States,” not among people living in non-State territories. Until the 14th Amendment, people were “Citizens of each State.” (Article. IV. Section. 2. Paragraph. 1.) The 14th Amendment created a whole new class of persons: “citizens of the United States.” This false notion of “one nation” overturned the Jeffersonian principle that our nation was a confederated republic, a voluntary union of states.
February 3, 1913
This is the date when the 16th Amendment was ratified, and the direct income tax and IRS were instituted. This was a flagrant repudiation of freedom principles! What began as a temporary measure to support the War of Northern Aggression became a permanent income revenue stream for an unconstitutional–and ever-growing–central government.
April 8, 1913
This is the date when the 17th Amendment was ratified. This amendment overturned the power of the State legislatures to elect their own senators and replaced it with a direct, popular vote. This was another serious blow against State sovereignty. The framers of the Constitution desired that the influence and power in Washington, D.C., be kept as close to the people and states as possible. For example, the number of representatives in the House of Representatives was to be decided by a limited number of voters. In the original Constitution, the ratio of “people of the several States” deciding their House member could not exceed “one for every thirty thousand.” (Article. I. Section. 2. Paragraph. 3.) And when it came to the US Senate, the framers also recognized the authority of each State legislature to select its own senators, thereby keeping power and influence from aggregating in Washington, D.C. The 17th Amendment seriously damaged the influence and power of the states by forcing them to elect their US senators by popular vote. The bigger the State, the less influence the State legislature has in determining its US senator. Senators who answered to State legislators, each answering to a limited number of voters, are much more accountable to the “citizens of the several States” than those who are elected by a large number (many times numbering into the millions) of people. For all intents and purposes (at least in the larger states), US Senators are more like “mini-Presidents” than they are representatives of sovereign states.
December 23, 1913
This is the date when the Federal Reserve Act was passed. This Act placed oversight of America’s financial matters into the hands of a cabal of private international bankers, who have completely destroyed the constitutional principles of sound money and (for the most part) free enterprise. No longer would the marketplace (private consumption, thrift, growth, etc.) be the determinant of the US economy (which is what freedom is all about), but now a private, unaccountable international banking cartel would have total power and authority to micromanage (for their own private, parochial purposes) America’s financial sector. Virtually every recession, depression, and downturn (including the one we are now experiencing) has been the direct result of the Fed’s manipulation (again, for its own purposes and with Washington’s cooperation) of the market.
June 26, 1945
This is the date when the United Nations Charter was signed and America joined the push for global government. Ever since, US forces have spilled untold amounts of blood and sacrificed thousands of lives promoting the UN’s agenda. Since the end of World War II, in virtually every war in which US military forces have been engaged, it has been at the behest of the UN. And it is also no accident that America has not fought a constitutionally declared war since we entered the UN–and neither have we won one.
Furthermore, it is America’s involvement in the United Nations that has spearheaded this draconian push for a New World Order that George H. W. Bush, Henry Kissinger, Tony Blair, Walter Cronkite, et al., have talked so much about. The United Nations is an evil institution that has completely co-opted our US State Department and much of our Defense Department. It is an anti-American institution that works aggressively and constantly against the interests and principles of the United States. But it is an institution that is ensconced in the American political infrastructure. Like a cancer, the UN eats away at our liberties and values, and both major political parties in Washington, D.C., are culpable in allowing it to exert so much influence upon our country.
June 25, 1962, and June 17, 1963
These are the dates when the US Supreme Court removed prayer (‘62) and Bible reading (‘63) from public schools. At this point, these two Supreme Court decisions were the most serious affront to the First Amendment in US history. Think of it: from before a union of states was established in 1787, children had been free to pray and read the Scriptures in school. We’re talking about a period of more than 200 years! Of course, the various State legislatures–and myriad city and county governmental meetings–still open their sessions in prayer, as do the US House and Senate, and even the US Supreme Court. But this same liberty is denied the children of America. There is no question that America has not recovered from these two horrific Supreme Court decisions. In effect, the federal government has expelled God not only from our public schools, but also from our public life! And America has not been the same since.
October 22, 1968
This is the date when President Lyndon Baines Johnson signed the Gun Control Act of 1968. Before this Act, the 2nd Amendment was alive and well in the United States. The Gun Control Act of 1968 turned a right into a privilege and forever forced the American people to bow to the altar of government when seeking to arm themselves. Interestingly enough, this Gun Control Act mirrored Nazi Germany’s Gun Control Act of 1938. In fact, the Gun Control Act of 1968 is almost a verbatim copy of Hitler’s Gun Control Act of 1938.
Our Founding Fathers could never have imagined that governments within the “several States” would ever be allowed to deny the people’s right to keep and bear arms. In fact, it was the attempted confiscation of the firearms stored at Concord, Massachusetts, that triggered the War of Independence in 1775. That the people of Massachusetts would be denied their right to keep and bear arms, as they are today, could not have been foreseen–and would never have been tolerated–by America’s founders.
Yet, most of the hundreds of draconian gun control laws that have been inflicted upon the American people have all come about as a result of the Gun Control Act of 1968.
January 22, 1973
This is the date when the US Supreme Court issued the Roe v. Wade and Doe v. Bolton decisions, which, in effect, legalized abortion-on-demand. These two decisions expunged the Jeffersonian principle that all men are endowed by their Creator with the unalienable right to life (Declaration). Since then, more than 50 million unborn babies have been legally murdered in their mothers’ wombs. Abortion is, without a doubt, America’s national holocaust. It has opened the door to a host of Big Government programs and policies that have resulted in the wanton destruction of human life both in the United States and overseas. It has created an entire industry whose express purpose for existing is the destruction of human life. It has desensitized the conscience and soul of America. Furthermore, it has forced men of decency and good will to finance–with their tax dollars–the unconscionable act of killing unborn children.
And once again, another Jeffersonian principle was eviscerated. He said, “To compel a man to furnish contributions of money for the propagation of ideas which he disbelieves and abhors is sinful and tyrannical.” The Roe and Doe decisions violate this principle in the most egregious manner possible.
October 26, 2001
This is the date when President George W. Bush signed the USA Patriot Act, and the federal government’s war against individual liberty began in earnest. Most of the unconstitutional eavesdropping, snooping, wiretapping, phone call intercepting, email reading, prying, financial records tracking, travel watching, ad infinitum, ad nauseam, by federal police agencies began with the implementation of the Patriot Act. The Department of Homeland Security and the “war on terrorism,” which have resulted in the deaths of tens of thousands of innocent people worldwide, and the usurpation of federal power at home, have all come about as an outgrowth of the Patriot Act. The USA Patriot Act has forever shifted the focus of American law and jurisprudence against constitutional government and individual liberty, toward a police-state mentality. The Patriot Act is even turning our local and State law enforcement agencies into military-style “Jackboots,” where police officers see themselves not necessarily as guardians of the citizenry, but, as often as not, as adversaries, where citizens are deemed to be the “enemy.”
October 17, 2006, and October 9, 2009
These are the dates when President G.W. Bush signed and President Barack Obama re-signed the Military Commissions Act. This Act is the outgrowth of the Patriot Act but has, in effect, terminated the fundamental protections of individual liberty, which are found in the US Constitution and Bill of Rights. For all intents and purposes, the Patriot Act and Military Commissions Act eviscerated the 4th and 5th Amendments, and do serious injury to several others. The Military Commissions Act also expunges the constitutional right of Habeas Corpus.
March 21 and 23, 2010
These are the dates when Congress passed and President Obama signed into law the “Patient Protection and Affordable Care Act,” the so-called “health care reform” bill that we spoke about at the beginning of this column. While Social Security and various Welfare programs have toyed with socialism in the United States, this bill is the largest and most expansive endorsement of socialism in American history. This bill socializes some 18% of the US economy by socializing the health care industry in America. The fallout and ramifications of this bill are going to be horrific.
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