March 25, 2010

Caterpillar, John Deere Announce Massive Tax Hits Due to ObamaCare
— Ace

Ain't that America.

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 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 companyÂ’s recovery this year after a 75% plunge in income during 2009.

“From our point of view, a tax increase like this cannot come at a worse time,” said Jim Dugan, a Caterpillar spokesman.

And John Deere:


Farm equipment maker Deere expects after-tax expenses to rise by $150 million this year as a result of the health care reform law President Barack Obama signed this week.

Most of the higher expense will come in DeereÂ’s second quarter, the company said on Thursday. The expense was not included in the companyÂ’s earlier 2010 forecast, which called for net income of about $1.3 billion. Â…

The law could raise expenses for large U.S. employers. Industrial companies, which typically have large numbers of retirees, may be among those facing the biggest bill. Caterpillar had argued before the legislation passed that health reform would put it at a disadvantage against global competitors.

Video at Hot Air of Obama saying "you can measure America's bottom line by looking at Caterpillar's bottom line." Well, Caterpillar just took a massive tax hit. How's that workiin' out then?

Posted by: Ace at 10:04 AM | Comments (92)
Post contains 262 words, total size 2 kb.

1 Wow.  I sure didn't see that coming.

/sarc (for the trolls)

Posted by: Jane D'oh at March 25, 2010 10:06 AM (UOM48)

2 AK Steel is taking a 31 million dollar hit 1st quarter for this shit too.

Posted by: Butters at March 25, 2010 10:06 AM (wuv1c)

3 Read my lips "There will be no new taxes!"

Posted by: Barack Insane Obama at March 25, 2010 10:07 AM (Vu6sl)

4
ObamaCare is a Job-killing TAX INCREASE.

While the democrats use their emotional propaganda to deceive a nation, the reality is that private industry is being held up at gun-point.


Posted by: Lemon Kitten at March 25, 2010 10:08 AM (0fzsA)

5 Obama is a Marxist who knows nothing about capitalism except how to tear it down, with government filling the resulting vacuum or "wasteland".

Posted by: Dr. Spank at March 25, 2010 10:08 AM (I1/U/)

6 Spread that wealth around.  Wait, we're running low on wealth?  Oh...

Posted by: Niles Standish at March 25, 2010 10:08 AM (fGMGp)

7 But that's not price and earnings ratios.

Posted by: Barry Soetoro at March 25, 2010 10:08 AM (LKkE8)

8 There was a time when this would have been really good news.

Posted by: Rachel Corrie at March 25, 2010 10:08 AM (YCVBL)

9
Democrats live, breathe, eat, shit, f**k, to TAX.




Posted by: Lemon Kitten at March 25, 2010 10:09 AM (0fzsA)

10

blah, blah, blah... You vote for a Marxist, you get a Marxist.

Did I mention that the biggest news of the day is that I'm no longer on Facebook?

Posted by: Truman North at March 25, 2010 10:09 AM (e8YaH)

11 WSJ also reported that Medtronic (maker of defibrillators, pace makers, heart valves, etc.) will be laying off a thousand workers and Verizon sent a letter out to its employees about the negative impact of Obamacare on their bottom line.

Posted by: runningrn at March 25, 2010 10:09 AM (CfmlF)

12 Don't worry, the Department of Agriculture will be there to make more loans to be defaulted on to cover the price increases the farmers will have to pay for the jacked up farm equipment.

Posted by: ryukyu at March 25, 2010 10:10 AM (MOHSR)

13 Selfish racists.

Posted by: Filly at March 25, 2010 10:10 AM (onwJ3)

14 I have said it before, and while it is a bit hysterical, I continue to worry that these idiots will fuck around until the precipitate a crash in the food production system and we will be royally screwed.  Its unlikely I guess.

Posted by: doug at March 25, 2010 10:10 AM (Sa/HV)

15 Thank God for the good and welfare clause.

Posted by: John Conyers at March 25, 2010 10:10 AM (YCVBL)

16

WSJ: Why the Personal Mandate to Buy Health Insurance Is Unprecedented and Unconstitutional

A mandate requiring all individuals to purchase health insurance would be an unprecedented form of federal action. The government has never required people to buy any good or service as a condition of lawful residence in the United States. An individual mandate would have two features that, in combination, would make it unique. First, it would impose a duty on individuals as members of society. Second, it would require people to purchase a specific service that would be heavily regulated by the federal government.[1]

Posted by: conscious and not a lawyer at March 25, 2010 10:10 AM (Vu6sl)

17 OT:  Byrd Rule successfully invoked; they can't tack on student loans or a number of other things to HCR

Posted by: Truman North at March 25, 2010 10:11 AM (e8YaH)

18 Two Illinois companies. Interesting.

Posted by: Bomber at March 25, 2010 10:11 AM (qzoN5)

19 The CEO of Catepillar kind of deserves this. Didn't he do a campaign stop with Obama pushing the Stimulus?  Be careful with who you get into bed with

Posted by: Butters at March 25, 2010 10:12 AM (wuv1c)

20

#10  Did I mention that the biggest news of the day is that I'm no longer on Facebook?

Good for you, Truman!  I burned Facebook a long time ago and never looked back.

Posted by: Kratos (missing from the side of Mt Olympus) at March 25, 2010 10:12 AM (9hSKh)

21 Medtronic kept my sweet mom alive for years.  As a matter of fact, the night she died, her heart was the last thing to give out.  Glad she and Dad aren't around to see this crap sandwich.  (Heh.  My dad was a prolific letter writer to his local paper over the years.  A staunch conservative, and generous soul who could not abide idiot leftists.  And he received death threats.  Had a concealed carry permit, and used it.  Drove leftard sis nuts.)

Posted by: Jane D'oh at March 25, 2010 10:13 AM (UOM48)

22 The farming stopped in Atlas Shrugs too.

Posted by: dagny at March 25, 2010 10:13 AM (ClTG+)

23 These companies have been threatening our hovels for years. Praise Allah that Obama has taken action against these companies before they start threatening members of Congress.

Posted by: The PLO at March 25, 2010 10:13 AM (I1/U/)

24

So, how many John Deere empleyees were in favor of HC? They thought they'd get something for nothing and supported it. Instead, they will be getting a pink slip and still be on the hook for their own healthcare. Those people ldeserve what they have coming.

For those that did not support the corrupt, dishonest socialist take over of HC, you have my sympathy

Posted by: you wnated it at March 25, 2010 10:14 AM (0cUgO)

25

Caterpillar regularly makes Comrade Zero look like an ass, and their products are big, powerful and destructive.  They even flatten terrorist houses in Gaza, as well as an occasional useful idiot.

I nominate Caterpillar for the title of Dick Cheney of American manufacturers.

Posted by: Cicero at March 25, 2010 10:14 AM (QKKT0)

26 Hey, all you union guys at Cat and John Deere, how you going to like losing your jobs, assholes, over Obamacares bail out of the UAW?

This shit keeps up I think we CAN take back BOTH houses of Congress.


Posted by: Kemp at March 25, 2010 10:14 AM (2+9Yx)

27

I guess the Administration's hard pivot to "jobs, jobs, jobs" is to take even more money from companies to make people lose their "jobs, jobs, jobs".

One might have the crazy notion that was the whole point...

/In the end, only financial chaos!

Posted by: Kratos (missing from the side of Mt Olympus) at March 25, 2010 10:14 AM (9hSKh)

28 Dear lefty America, I think it's been nice to be neighbors for all these decades. Heck, a relationship that's over 200 years old is tough to give up, but we've grown in different directions. Tell you what, why don't you keep New York and California and we'll keep the rest and call it even. You can also keep the auto manufacturers in Detroit that aren't called Ford. We'll keep the rest of the country (And our Freedom) and send you the worst of the lefties that we can find. Oops did I say worst? You would of course consider them the BEST. Buh bye now. FOAD

Posted by: Mephitis at March 25, 2010 10:15 AM (ehXLT)

29

Truman and Kratos. People keep telling me to open a facebook account. I don't really want to broadcast my personal stuff. I understand that it is addicitive too. Why did you leave?

 

Catepillar guy said that Obama lied about their meeting too.

Posted by: dagny at March 25, 2010 10:17 AM (ClTG+)

30

This story goes well with Verizon's announcement:

http://tinyurl.com/yghqbpr

Now that's some serious hopin' and changin'.

Posted by: madtechie at March 25, 2010 10:17 AM (VVz4l)

31 "#10 Did I mention that the biggest news of the day is that I'm no longer on Facebook?" I tried to register, but they said my face looked too dead. The jewbastards.

Posted by: Rachel Corrie at March 25, 2010 10:17 AM (YCVBL)

32 Caterpillar, Deere, fat cats. . . .what does Obama have against animals?

Posted by: Scott at March 25, 2010 10:17 AM (/vyvP)

33

On Rush next:

 

Castro has endorsed Obamacare as a "miracle".

Posted by: dagny at March 25, 2010 10:18 AM (ClTG+)

34 So, "The One" is back in Iowa, on our dime, campaigning for the caucuses in 2012. 

Those union assholes out there deserve what they get.  The state is a bag of S*it.  The only thing they do out there worth a damn is wrestle and that's because most of those farm boys like holding on to each other.

F*ck Iowa, if they hadn't giving "Our Leader" a win this would not be happening now.

Posted by: Kemp at March 25, 2010 10:20 AM (2+9Yx)

35 "A bunch of non-working farmers couldn't possibly cause any trouble to the ruling, taxing government now, could they?"

-a Torie, 1776.

Posted by: dfbaskwill at March 25, 2010 10:20 AM (usjNq)

36 What does Obama have against animals?

This just in:  Rahm seen killing unicorns in their barn on the WH grounds.  Plans to blame tea partiers and bitter clingers. 

Posted by: Jane D'oh, who never says at March 25, 2010 10:20 AM (UOM48)

37 Damn those big corporations wanting to make profits.  Damn them to hell.

Posted by: CUS at March 25, 2010 10:21 AM (wOGfT)

38 Will we have to pay the hit GM and Chrysler take for this too?

Posted by: Jean at March 25, 2010 10:21 AM (PjevJ)

39 38 Will we have to pay the hit GM and Chrysler take for this too?

Maybe not, I think the UAW contract is not covered and is already broken out of GM's balance sheet.

Posted by: Kemp at March 25, 2010 10:24 AM (2+9Yx)

40 26 Hey, all you union guys at Cat and John Deere, how you going to like losing your jobs, assholes, over Obamacares bail out of the UAW?

This shit keeps up I think we CAN take back BOTH houses of Congress.


Posted by: Kemp at March 25, 2010 02:14 PM (2+9Yx)

I for one will richly enjoy seeing Nancy Pelosi take up her new position as ranking minority member on the Subcommittee on Federal Workforce, Post Office, and the District of Columbia"

Maybe she'll give a press conference from her new office.

In the basement of the Ford House Building....

Next to the trash room...

Posted by: Nighthawk at March 25, 2010 10:24 AM (OtQXp)

41 Didn't Caterpillar support Obama, especially when he went to their factory to speachify?

If so, they got what they deserved. 

Posted by: Vic at March 25, 2010 10:25 AM (QrA9E)

42

#29  Catepillar guy said that Obama lied about their meeting too.

Surprise, surprise, surprise.

I left because a) I hated the Facebook quizzes and pokes, b) Had only a grand total of 4 people as "friends" that I cared about, and c) Yeah, I hate broadcasting my personal stuff.

Posted by: Kratos (missing from the side of Mt Olympus) at March 25, 2010 10:26 AM (9hSKh)

43 1st week of DEC 2008, my (now former) company (whose #1 customer was CATerpillar, from whom we had the majority of our business contracts) handed out Christmas bonuses to everyone in the company. They stated that despite the downturn in the economy, our company's future still looked good. 2 weeks later, CATerpillar told my (now former) company that they would not be renewing contracts for 2009 as they were going to have to go lean. They laid off pretty much all our on-site workers in Peoria and half our office here in SE Michigan was laid off, including me. In other words, this hits home especially for me, since I was laid off as a direct result of CATerpillar's business decisions, based on their financial situation. 15 months later, I'm still 'funemployed' and I still get pissed off every time I remember Obama using CATerpillar for political points for his "Stimulus".

Posted by: Chgofan3 at March 25, 2010 10:26 AM (ObTcs)

44 Well now that the bill has been passed I guess we can see what's in it.

Posted by: Bosk at March 25, 2010 10:26 AM (pUO5u)

45

From WSJ, portions of the email Verizon employees received titled "President Obama Signs Health Care Legislation" from Marc Reed, VP of Human Resources:

"'We expect that Verizon's costs will increase in the short term.  It is difficult at this point to gauge the precise impact of this legislation,'... the message to workers was clear:  Expect changes for the worse to your health benefits as the direct result of this bill, and maybe as soon as this year.

Mr. Reed specifically cited a change in the tax treatment of retiree health benefits.  When Congress created the Medicare prescription drug benefit in 2003, it included a modest tax subsidy to encourage employers to keep drug plans for retirees, rather than dumping them on the government.  The Employee Benefit Research Institute says this exclusion--equal to 28% of the cost of a drug plan will run tax payers $665 per person next year while the same Medicare coverage will cost $1209. 

In a $5.4 billion revenue grab, Democrats decided that this $665 fillip should be subject to the ordinary corporate income tax of 35%.  Most consulting firms and independent analysts say the higher costs will induce some companies to drop drug coverage, which could affect about 5 million retirees and 3500 businesses....The new bill might cause some to drop retiree coverage altogether.  Others...bound by labor contracts to retirees will find other ways to cut costs.  This means raising costs or reducing coverage for other employees.  so much for Mr. Obama's claim that if you like your coverage, you can keep it--even at Fortune 500 companies. 

In its employee note, Verizon also warned about the 40% tax on high end health plans..."'Many of the plans that Verizon offers to employees and retirees are projected to have costs above the threshold in the legislation and will be subject to the 40% tax'."

Posted by: runningrn at March 25, 2010 10:27 AM (CfmlF)

46 Butters, the head of Caterpillar was a millionaire this morning and he'll be a millionaire this evening.  
Think before you type. The loss of earnings, and the loss of jobs rolls down hill not up.

Posted by: gus at March 25, 2010 10:27 AM (Vqruj)

47 #41

Yeah, maybe the stockholders will not be too happy and get rid of the ass kissing management.

Posted by: Kemp at March 25, 2010 10:27 AM (2+9Yx)

48

44 Well now that the bill has been passed I guess we can see what's in it.

Even they don't know what's in it (example: the "no denial of pre-existing conditions on children").  It's like the Pandora's box of bills.

Posted by: Kratos (missing from the side of Mt Olympus) at March 25, 2010 10:28 AM (9hSKh)

49 And so it begins....

Not with a bang, but a whimper.

Posted by: Guy Fawkes at March 25, 2010 10:30 AM (7VvJB)

50 10

blah, blah, blah... You vote for a Marxist, you get a Marxist.

Did I mention that the biggest news of the day is that I'm no longer on Facebook?

Posted by: Truman North at March 25, 2010 02:09 PM

Sorry to see you go, TN. Was it that creep who was making the threats? I thought only teabaggrz did that

Posted by: kbdabear at March 25, 2010 10:30 AM (sYxEE)

51 Did anyone else get the email about Michelle's brother keeping his job coaching BB at U of Oregon because of Stimulus money?

I am sure the $17 million they got was just a consistence.

Posted by: Kemp at March 25, 2010 10:30 AM (2+9Yx)

52 Didn't Caterpillar support Obama, especially when he went to their factory to speachify? Posted by: Vic at March 25, 2010 02:25 PM They told Obama that if he produced a good jobs-growth bill, that it would help CATerpillar turn things around soon. But they never endorsed his "Stimulus". Obama then went out in his speech at their plant and lied about what the CAT people told him, telling people that the CAT people told him that if Congress passed the Stimulus, things would turn around for CAT. Whether or not they supported him in the 2008 campaign, I don't know.

Posted by: Chgofan3 at March 25, 2010 10:31 AM (ObTcs)

53 Oops OSU not OU. Email below.

Some have said that the stimulus hasn't saved any jobs, but here is a case where at least one job was saved. Oregon State University Athletic Director Bob DeCarolis was considering firing their basketball coach, Craig Robinson, after an 8-11 start (2-5  in the Pac 10 conference).  When word of this reached Washington , Undersecretary of Education Martha Kanter was dispatched to Corvallis with $17 million in stimulus money for the university.  Craig Robinson's job is safe for this year.  For those of you unfamiliar with Coach Robinson, he just so happens to be Michelle Obama's brother. Just a coincidence I'm sure!   

Posted by: Kemp at March 25, 2010 10:33 AM (2+9Yx)

54 Did anyone else get the email about Michelle's brother keeping his job coaching BB at U of Oregon because of Stimulus money? Posted by: Kemp at March 25, 2010 02:30 PM I got that e-mail from a conservative friend. He then followed it up with a Snopes.com post which debunks it. Well, it debunks the part about the money saving his job. I have no doubt, though, that the reason the university got the money was directly related to the fact that Michelle O's brother is a coach there.

Posted by: Chgofan3 at March 25, 2010 10:35 AM (ObTcs)

55 53 The United States of America will be renamed "Chicago"

Posted by: dagny at March 25, 2010 10:36 AM (ClTG+)

56 Dumb question. These are some pretty big hits in a tough economy. These companies have some clout and they also have bean counters and lawyers. They had to know how this bill would impact them. Why were they not screaming about this before it became law?

Posted by: RM at March 25, 2010 10:38 AM (1kwr2)

57 Mischaracterizations.  All of it.  Also kind of mathy and hard.

Posted by: Circa (Insert Year Here) at March 25, 2010 10:43 AM (B+qrE)

58 56 Dumb question. These are some pretty big hits in a tough economy. These companies have some clout and they also have bean counters and lawyers. They had to know how this bill would impact them. Why were they not screaming about this before it became law?         The WSJ article said that "Verizon and other large corporations warned about this outcome", and that "These and many other changes were enabled by the support of the Business Roundtable that counts Verizon as a member.  Verizon CEO, Ivan Seidenberg's health reform ideas are 180 degrees from Mr. Obama's but Verizon shareholders and 900,000 employees and retirees will still pay the price.  Businesses around the country are making the same caluculations as Verizon and no doubt sending out similar messages.  It's only a small measure of the destruction that will be churned out by the rewrite of health, tax, labor and welfare laws that is ObamaCare, and only the vanguard of much worse to come."   Big business allowed itself to be played like a tiny fiddle by our Chicago Thug Precedent.

Posted by: runningrn at March 25, 2010 10:48 AM (CfmlF)

59 Why were they not screaming about this before it became law?

They were.  The media decided to cover their boyfriend's exploits on the field.

Posted by: AmishDude at March 25, 2010 11:14 AM (T0NGe)

60 They're big corporations. They deserve to be punished.

Posted by: WaterCow at March 25, 2010 11:28 AM (cQyWA)

61 poop! POOH POOH

Posted by: Andy Rand at March 25, 2010 11:37 AM (mhD2v)

62

The CEO of Caterpillar actually called Obama out for his mischaracterizations. It was a Joe The Plumber moment for The One. I don't think Cat deserves our generalized spittle-flecked hatred quite so much. You hear me there, upthread?

A lot of us have quite a bit of loyalty to these two firms, based on their products. Commenters are well advised to keep this in mind, union or no union.

Now. Obama and Pelosi just fucked with John Deere. This means war. 

Posted by: comatus at March 25, 2010 11:54 AM (/VEEI)

63 "Big business allowed itself to be played like a tiny fiddle by our Chicago Thug Precedent."

If big businesses allowed themselves to be played (I'm looking at you, Big Pharma.), it was in an effort to forestall the inevitable. The whole point is to collapse the capitalist system.

Posted by: BigDaddy1964 at March 25, 2010 12:06 PM (pOcKt)

64 Why, that's just what those evil, redneck, Gaia-raping corporations deserve for opposing the will of Dear Leader and making him look bad! If only they'd just re-tool their assembly lines to produce GoreGreentm wind-powered SmartCycles and hydraulic ram-fisting machines, all would be well!

<hateful sarcasm/> off...


Posted by: Chainsaw Chimp at March 25, 2010 12:07 PM (pLTLS)

65 We didn't need all those job anywise, eh?

Posted by: Titus Quinctius Cincinnatus at March 25, 2010 12:30 PM (DrGKS)

66

Deere Employs About 12,000 Workers In Plants At Waterloo....

Hmm, maybe DeMint is really Karnak.

Posted by: Schwalbe at March 25, 2010 01:35 PM (UU0OF)

67

The United States of America will be renamed "Chicago" Detroit.

And the Demunist Commiecrats who harp about "exportig jobs" need to be confronted with a simple question: Who exported the jobs? The answer is They did.

Posted by: Curmudgeon at March 25, 2010 02:03 PM (ujg0T)

68

 

hipsters with truckers hats hardest hit.

 

 

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