Friday, April 2, 2010

Verizon Writes off a Billion under New Health Care Law

Verizon stated yesterday the following:

Under the Patient Protection and Affordable Care Act, which became law on March 23, 2010, and the Health Care and Education Reconciliation Act of 2010, Verizon Communications Inc. (Verizon) and other companies that receive a subsidy under Medicare Part D to provide retiree prescription drug coverage will no longer receive a Federal income tax deduction for the expenses incurred in connection with providing the subsidized coverage to the extent of the subsidy received. Because future anticipated retiree health care liabilities and related subsidies are already reflected in Verizon’s financial statements, this change requires Verizon to reduce the value of the related tax benefits recognized in its financial statements in the period during which the law is enacted. As a result, Verizon expects to record a one-time, non-cash tax charge of approximately $970 million in the first quarter of 2010 to reflect the impact of this change.

This is near Billion dollar write off. Verizon is just another major corporation which must take money from developing new jobs and send it to the Government. How many jobs were lost or destroyed by this Law, well is one uses the number of $100,000 per employee, then we have 10,000 such jobs lost or destroyed! Where is the current Vice President when we really need him. And that is just one company and just one part of this new law.

Stand by as we see the implications grow and grow. One should compare this to the proposal we made six months ago, however our proposal did not line the pockets of Congress and Unions!