Thursday, March 25, 2010

ObamaCare’s Immediate Impact: Declining Profits for an Already Weak Manufacturing Sector

With the ink not even dry on the Democrats’ health care overhaul, American manufacturers are already warning about how much it will cost them. Both Deere and Caterpillar are reporting that the bill will result in their reported earnings declining by $150 million and $100 million respectively. A spokesman for Caterpillar noted the bill’s tax “could cause us to consider changes to the retiree prescription drug benefit,” a concern other companies have raised as well. This is just a preview of what is to come from the over half-trillion dollar in tax increases contained in the Democrats’ health care bill -- the largest tax increase in American history.

Caterpillar predicts $100M health care reform cost:
“Heavy-equipment maker Caterpillar says the new health care reform law will create a $100 million drag on its first-quarter earnings because of tax law changes.”

Deere says health care law will raise expenses :
"Deere, based in Moline, Ill., is the second company this week to indicate that the new law will increase its costs."

Obama Tax’s $14 Billion Charge Starts at Caterpillar
"Disclosures by Caterpillar and AK Steel Holding Corp. in the two days since the signing are the first sets of health-care charges that ultimately may shave as much as $14 billion from U.S. corporate profits."

Deere sees $150 million hit from healthcare reform:
"Farm equipment maker Deere & Co expects after-tax expenses to rise by $150 million this year as a result of the healthcare reform law President Barack Obama signed this week."

Ways and Means Republican Press Officewww.Republicans.WaysandMeans.House.Gov

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