Commentary Magazine


Topic: AT&T

Flotsam and Jetsam

But it was supposed to help the Democrats: “Gallup’s most recent polling of the generic ballot shows a net five-point bounce for the Republicans, post-health care passage. The poll of registered voters now shows a lead of 47%-44%; Republicans had trailed by a similar 47%-44% margin in the first and second weeks of March, and by a 47%-45% margin in last week’s tracking results.  The loss for the Democrats comes mostly from independent voters; the gain for Republicans comes from Republican and Democratic voters turning toward the GOP.”

But it hasn’t, explains Jeffrey Anderson: “The Democrats had optimistically claimed that turning a deaf ear to the American people and passing their unpopular bill would make it popular. But Scott Rasmussen observes that ‘the overriding tone of the data is that passage of the legislation has not changed anything. Those who opposed it before now want to repeal it. Those who supported the legislation oppose repealing it.’ Unfortunately for the Democrats, the former number is a lot bigger than the latter one.”

But Obama said voters would learn to love it once it passed: “In addition to sharing Republicans’ and Democrats’ concerns about the bill’s failure to address healthcare costs, and sharing Republicans’ concerns about government intervention and costs, the majority of independents agree with Democrats that the bill doesn’t do enough to regulate the healthcare industry. As a result, independents concur with four of the five critiques tested, one more than members of either political party do.”

But Obama said voters didn’t care about “process”: Gallup asked “whether Americans believe the methods Democratic leaders used to secure passage of the bill represented ‘an abuse of power’ or ‘an appropriate use’ of the majority party’s power in Congress. Nearly 9 in 10 Republicans see it as abuse of power, whereas a smaller majority of Democrats (70%) call it an appropriate use of power. The majority of independents agree with most Republicans on this question.”

But the Republican insiders told us that Charlie Crist was the “safe” choice: “Former FL GOP chair Jim Greer is the subject of a criminal investigation after an audit showed he may have profited from party activity, according to sources with knowledge of the investigation. … Under pressure from major donors and party elders, Greer announced in early Jan. he would resign in Feb. Donors had been upset with his stewardship of party finances, and with spending many saw as beneficial to Gov. Charlie Crist (R), Greer’s major backer when he became chair. Greer is supporting Crist in the primary against ex-FL House Speaker Marco Rubio (R), which did not sit well with the state’s activist base.”

But don’t they know that Henry Waxman will haul them in front of his committee to read them the riot act? “Boeing Co. will take a charge of $150 million due to the recent health care overhaul legislation, the aircraft maker said Wednesday. The charge will hurt earnings by 20 cents per share in the first quarter of 2010. In 2013 Boeing will no longer be able to claim an income tax deduction related to certain prescription drug benefits for retirees. Accounting rules require that the company take the charge during the period the legislation is enacted. Several other companies have said they will take accounting charges due to the health care reform bill including AT&T, AK Steel Corp., Caterpillar Inc. and 3M Co.”

But what about the rest of the country? “The top House Republican says the White House’s decision to begin offshore drilling across huge expanses of ocean is a ‘positive step,’ but he’s still blasting the Obama administration for keeping areas on the West Coast closed to such exploration. House Minority Leader John Boehner, an Ohio Republican, said that the administration ‘continues to defy the will of the American people,’ who he says supported a 2008 congressional decision to allow oil exploration off the Pacific Coast and Alaska.”

But Obama was going to keep unemployment at 8 percent and “pivot” from ObamaCare to job creation: “Private-sector employers unexpectedly shed 23,000 jobs in March, according to a measure of private-sector employment released this morning, reminding us of the very choppy nature of this recovery.”

But it was supposed to help the Democrats: “Gallup’s most recent polling of the generic ballot shows a net five-point bounce for the Republicans, post-health care passage. The poll of registered voters now shows a lead of 47%-44%; Republicans had trailed by a similar 47%-44% margin in the first and second weeks of March, and by a 47%-45% margin in last week’s tracking results.  The loss for the Democrats comes mostly from independent voters; the gain for Republicans comes from Republican and Democratic voters turning toward the GOP.”

But it hasn’t, explains Jeffrey Anderson: “The Democrats had optimistically claimed that turning a deaf ear to the American people and passing their unpopular bill would make it popular. But Scott Rasmussen observes that ‘the overriding tone of the data is that passage of the legislation has not changed anything. Those who opposed it before now want to repeal it. Those who supported the legislation oppose repealing it.’ Unfortunately for the Democrats, the former number is a lot bigger than the latter one.”

But Obama said voters would learn to love it once it passed: “In addition to sharing Republicans’ and Democrats’ concerns about the bill’s failure to address healthcare costs, and sharing Republicans’ concerns about government intervention and costs, the majority of independents agree with Democrats that the bill doesn’t do enough to regulate the healthcare industry. As a result, independents concur with four of the five critiques tested, one more than members of either political party do.”

But Obama said voters didn’t care about “process”: Gallup asked “whether Americans believe the methods Democratic leaders used to secure passage of the bill represented ‘an abuse of power’ or ‘an appropriate use’ of the majority party’s power in Congress. Nearly 9 in 10 Republicans see it as abuse of power, whereas a smaller majority of Democrats (70%) call it an appropriate use of power. The majority of independents agree with most Republicans on this question.”

But the Republican insiders told us that Charlie Crist was the “safe” choice: “Former FL GOP chair Jim Greer is the subject of a criminal investigation after an audit showed he may have profited from party activity, according to sources with knowledge of the investigation. … Under pressure from major donors and party elders, Greer announced in early Jan. he would resign in Feb. Donors had been upset with his stewardship of party finances, and with spending many saw as beneficial to Gov. Charlie Crist (R), Greer’s major backer when he became chair. Greer is supporting Crist in the primary against ex-FL House Speaker Marco Rubio (R), which did not sit well with the state’s activist base.”

But don’t they know that Henry Waxman will haul them in front of his committee to read them the riot act? “Boeing Co. will take a charge of $150 million due to the recent health care overhaul legislation, the aircraft maker said Wednesday. The charge will hurt earnings by 20 cents per share in the first quarter of 2010. In 2013 Boeing will no longer be able to claim an income tax deduction related to certain prescription drug benefits for retirees. Accounting rules require that the company take the charge during the period the legislation is enacted. Several other companies have said they will take accounting charges due to the health care reform bill including AT&T, AK Steel Corp., Caterpillar Inc. and 3M Co.”

But what about the rest of the country? “The top House Republican says the White House’s decision to begin offshore drilling across huge expanses of ocean is a ‘positive step,’ but he’s still blasting the Obama administration for keeping areas on the West Coast closed to such exploration. House Minority Leader John Boehner, an Ohio Republican, said that the administration ‘continues to defy the will of the American people,’ who he says supported a 2008 congressional decision to allow oil exploration off the Pacific Coast and Alaska.”

But Obama was going to keep unemployment at 8 percent and “pivot” from ObamaCare to job creation: “Private-sector employers unexpectedly shed 23,000 jobs in March, according to a measure of private-sector employment released this morning, reminding us of the very choppy nature of this recovery.”

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Democrats Try to Smother the Bad News

As I’ve noted during the week, the ObamaCare steamroller is already flattening the bottom lines of a number of large employers. Not content to see billions of losses pile up, the Democrats have now begun to berate employers for accurately accounting for the anticipated losses. The Wall Street Journal editors note:

Henry Waxman and House Democrats announced yesterday that they will haul these companies in for an April 21 hearing because their judgment “appears to conflict with independent analyses, which show that the new law will expand coverage and bring down costs.”

In other words, shoot the messenger. Black-letter financial accounting rules require that corporations immediately restate their earnings to reflect the present value of their long-term health liabilities, including a higher tax burden. Should these companies have played chicken with the Securities and Exchange Commission to avoid this politically inconvenient reality? Democrats don’t like what their bill is doing in the real world, so they now want to intimidate CEOs into keeping quiet.

On top of AT&T’s $1 billion, the writedown wave so far includes Deere & Co., $150 million; Caterpillar, $100 million; AK Steel, $31 million; 3M, $90 million; and Valero Energy, up to $20 million. Verizon has also warned its employees about its new higher health-care costs, and there will be many more in the coming days and weeks.

Well, this is par for the course: a complete disregard for the consequences of their own handiwork, the bullying of private enterprise, and the determination to politicize what were once economic and legal judgments. One can see in the Democrats’ fury the desperate attempt to conceal the implications of their monstrous legislation, to maintain as long as possible the fiction that ObamaCare is a great cost-saver, and boon to employers. It’s going to be hard to keep up the charade, for as the editors note, ObamaCare “was such a shoddy, jerry-rigged piece of work that the damage is coming sooner than even some critics expected.”

In that regard the adverse consequences of ObamaCare will likely be more apparent than those of the ill-conceived stimulus plan, which “merely” added to the ocean of red ink. How will shareholders, small-business owners, employees, and retirees react as they see the damage pile up, and learn that there is more in store if the bill is fully implemented? Well, they might find “Repeal and Replace!” an attractive message.

As I’ve noted during the week, the ObamaCare steamroller is already flattening the bottom lines of a number of large employers. Not content to see billions of losses pile up, the Democrats have now begun to berate employers for accurately accounting for the anticipated losses. The Wall Street Journal editors note:

Henry Waxman and House Democrats announced yesterday that they will haul these companies in for an April 21 hearing because their judgment “appears to conflict with independent analyses, which show that the new law will expand coverage and bring down costs.”

In other words, shoot the messenger. Black-letter financial accounting rules require that corporations immediately restate their earnings to reflect the present value of their long-term health liabilities, including a higher tax burden. Should these companies have played chicken with the Securities and Exchange Commission to avoid this politically inconvenient reality? Democrats don’t like what their bill is doing in the real world, so they now want to intimidate CEOs into keeping quiet.

On top of AT&T’s $1 billion, the writedown wave so far includes Deere & Co., $150 million; Caterpillar, $100 million; AK Steel, $31 million; 3M, $90 million; and Valero Energy, up to $20 million. Verizon has also warned its employees about its new higher health-care costs, and there will be many more in the coming days and weeks.

Well, this is par for the course: a complete disregard for the consequences of their own handiwork, the bullying of private enterprise, and the determination to politicize what were once economic and legal judgments. One can see in the Democrats’ fury the desperate attempt to conceal the implications of their monstrous legislation, to maintain as long as possible the fiction that ObamaCare is a great cost-saver, and boon to employers. It’s going to be hard to keep up the charade, for as the editors note, ObamaCare “was such a shoddy, jerry-rigged piece of work that the damage is coming sooner than even some critics expected.”

In that regard the adverse consequences of ObamaCare will likely be more apparent than those of the ill-conceived stimulus plan, which “merely” added to the ocean of red ink. How will shareholders, small-business owners, employees, and retirees react as they see the damage pile up, and learn that there is more in store if the bill is fully implemented? Well, they might find “Repeal and Replace!” an attractive message.

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LIVE BLOG: The Warm Up

Excerpts are circulating of the president’s speech. The lawmakers are assembling. (Which incumbents want to rush to the aisle to shake the president’s hand, knowing that image wind up in some challenger’s campaign ad?) But this report sort of sums up where we are:

Speaker Nancy Pelosi’s guest list includes the expected array of family, political friends and a few union chiefs, including Richard Trumka of the AFL-CIO and Anna Burger of SEIU. But interestingly, Pelosi’s guest list includes the last sitting speaker to lose election: former Rep. Tom Foley.

Nothing like having those special, special-interest folks with you when the president decries corruption and lobbyists. As for Foley, I’m sure he’s telling Pelosi she  has nothing to fear so long as the president doesn’t double down on healthcare, insist her members vote on repeal of Don’t Ask, Don’t Tell and attack the Supreme Court for defending the First Amendment. Oh, wait.

UPDATE: A reader sends this along: “Foley worked as a lobbyist for Akin Gump Strauss Hauer & Feld after serving as U.S. ambassador to Japan, representing clients such as AT&T, Walt Disney Co., CSX Corp. and the State University of New York. Jim Wright, a Texas Democrat who was speaker from 1987 to 1989, was a consultant for Arch Petroleum Co., although it is unclear if he was ever a registered lobbyist, said the Office of the Historian of the House.” Great image, Nancy.

Excerpts are circulating of the president’s speech. The lawmakers are assembling. (Which incumbents want to rush to the aisle to shake the president’s hand, knowing that image wind up in some challenger’s campaign ad?) But this report sort of sums up where we are:

Speaker Nancy Pelosi’s guest list includes the expected array of family, political friends and a few union chiefs, including Richard Trumka of the AFL-CIO and Anna Burger of SEIU. But interestingly, Pelosi’s guest list includes the last sitting speaker to lose election: former Rep. Tom Foley.

Nothing like having those special, special-interest folks with you when the president decries corruption and lobbyists. As for Foley, I’m sure he’s telling Pelosi she  has nothing to fear so long as the president doesn’t double down on healthcare, insist her members vote on repeal of Don’t Ask, Don’t Tell and attack the Supreme Court for defending the First Amendment. Oh, wait.

UPDATE: A reader sends this along: “Foley worked as a lobbyist for Akin Gump Strauss Hauer & Feld after serving as U.S. ambassador to Japan, representing clients such as AT&T, Walt Disney Co., CSX Corp. and the State University of New York. Jim Wright, a Texas Democrat who was speaker from 1987 to 1989, was a consultant for Arch Petroleum Co., although it is unclear if he was ever a registered lobbyist, said the Office of the Historian of the House.” Great image, Nancy.

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