Commentary Magazine


Topic: Caterpillar

Presbyterians Take Another Step Toward Hate for Israel

As we wrote last week, the Presbyterian Church USA is faced with a choice about the future of its relations with the Jewish community and, indeed, the vast majority of Americans who ardently support the state of Israel. Unfortunately, rather than listen to voices of reason, church leaders have today taken another step toward approval of measures that place the denomination in favor of economic war against the Jewish state when their General Assembly Mission Council voted to recommend a report that calls for “selective divestment” from Israel.

Though the PCUSA claims what it is doing is meant to encourage peace, it is doing just the opposite. By approving a call for sanctions on some companies that do business in Israel, the PCUSA  is not only doing something that will encourage Palestinians to persist in refusing to make peace, they have also done something that makes it impossible for Jews and others who care about Israel to continue to work with the church on any issue.

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As we wrote last week, the Presbyterian Church USA is faced with a choice about the future of its relations with the Jewish community and, indeed, the vast majority of Americans who ardently support the state of Israel. Unfortunately, rather than listen to voices of reason, church leaders have today taken another step toward approval of measures that place the denomination in favor of economic war against the Jewish state when their General Assembly Mission Council voted to recommend a report that calls for “selective divestment” from Israel.

Though the PCUSA claims what it is doing is meant to encourage peace, it is doing just the opposite. By approving a call for sanctions on some companies that do business in Israel, the PCUSA  is not only doing something that will encourage Palestinians to persist in refusing to make peace, they have also done something that makes it impossible for Jews and others who care about Israel to continue to work with the church on any issue.

The measure approved in advance of the church’s biennial General Assembly to be held next summer specifically seeks to encourage divestment from Caterpillar, Motorola and Hewlett Packard because they do business with Israel’s Defense Ministry and the country’s home construction industry. While the Presbyterian activists who have promoted this noxious measure are attempting to distance themselves from their comrades in the BDS (boycott, divestment and sanctions) movement against Israel by choosing to try and pass a more limited measure rather than a full boycott, what they are advocating is a tactic that seeks to delegitimize Israel’s right of self-defense.

The attack on Motorola and Hewlett Packard is particularly insidious because they are singled out for the fact that Israelis use their equipment to build and man the security fence that protects the country against Palestinian terrorism. The fence has saved countless lives since its erection halted a wave of suicide bombings and other terrorist attacks. The Presbyterian move to approve a ban on these companies is tantamount to the church taking a stand that Israel has no right to take defensive measures aimed at saving the lives of its citizens.

The criticism of Caterpillar is just as hypocritical. The church simply assumes any Israeli construction or use of machines to create roads and security stations is illegitimate.

It should be emphasized that boycotts such as these do nothing to advance peace, despite the pious rhetoric that accompanies this destructive resolution. Rather than encouraging Palestinians to stop fomenting hatred of Israel and Jews and to go to the negotiating table which they have shunned for years, the Presbyterians are simply seeking to chip away at Israel’s right of self-defense and to live in peace. Such measures are part of an international campaign of attacks on the legitimacy of Israel and Jewish rights.

As much as we would like to accept the notion that the Presbyterians are acting in good faith, it needs to be pointed out to them that anyone who singles out one state or people in this manner or who seeks to remove their right of self-defense is acting in a discriminatory fashion. There is a term for those who engage in such bias against Jews: anti-Semitism. While the church may claim to oppose hatred against Jews or anyone for that manner, it must be understood by joining the ranks of the BDS movement in any manner, what they are doing is making common cause with the haters.

It should also be emphasized, as we have pointed out in the past, that support for these damaging resolutions is largely limited to the activists who work for the church and is not shared by the overwhelming majority of Americans who affiliate with Presbyterian churches or their pastors. Like most Americans, Presbyterians support America’s democratic ally Israel and have no wish to associate themselves with extremist measures that serve only to buttress the forces of Palestinian rejectionism.

But it will be up to the Presbyterian Church USA’s rank and file to make it clear to those who attend the biennial next summer that they must vote this awful measure down if they wish to remain part of the mainstream of American religious life.

It will also be up to American Jews and their rabbis to reach out to their Presbyterian neighbors to make them aware of what has happened to their church and what they must do to stop this. The Jewish Council on Public Affairs, the national umbrella group of Jewish community relations councils, has assumed an important leadership role in this struggle and did its best via outreach to try to persuade the Presbyterians to back away from the precipice. But now it will be up to ordinary Americans of every faith to make it clear to the PCUSA that business as usual cannot continue with them as long as they are prepared to place their faith on the side of hatred and intolerance. We can only hope church members will listen to their better angels of their nature and discard this resolution before any more harm is done to ecumenical relations.

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Why Waxman Decided Against a Bully-athon

Daily Caller reports that Rep. Henry Waxman decided against a hearing to excoriate business executives for recording tax losses attributable to ObamaCare. The reason: not only did the companies have a legal obligation to do so (had they not, Sen. Carl Levin would no doubt be hauling them before his committee one day to decry the fraud on the shareholders); they also would have produced some very embarrassing evidence that ObamaCare is going to drive up health-care costs. The report explains:

Most significantly, documents unearthed by the investigation highlight companies that are considering dumping employees from their current health-care plans in the face of new costs from the health-care law. President Obama repeatedly promised his health-care law would let Americans keep their current insurance if they’re happy with it.

A March 3 internal Verizon memo on the impact health-care law said new taxes on insurance companies and health-care equipment manufacturers will be passed onto employers through higher prices.

Facing such increased costs, employers like Verizon “may consider exiting the health-care market and send employees to the exchanges,” the memo says.

Under the law, companies would pay fines for not providing insurance companies coverage. But, the Verizon memo said, the fines would be “modest” compared to providing coverage for employees.

In a March 25 e-mail, John Deere’s director of labor relations, Kenneth Hugh, said, “We ought to look at … denying coverage and just paying the penalty … we would need to figure out which one was more expensive.” John Deere faces a unique situation because of contracts with its unionized workers.

Whether or not companies are being forced to rescind employee coverage, they may need to raise insurance premiums, the documents show.

The top human resources official at Caterpillar said in a March 23 e-mail that the company will need to “figure out what this will cost us and collect that in increased premiums which we will attribute to the legislation”

Oops. Wrong answer. Bag the hearing. It seems that ObamaCare opponents would do well to get one or more of these execs in front of a committee and let them tell the American people what Obama and Waxman won’t — that ObamaCare isn’t going to guarantee they can keep their insurance and it is going to cost them a bundle. Republicans argue that divided government is needed to check Obama’s leftist agenda. As Waxman’s gambit shows, it’s also the only way to achieve congressional oversight.

Daily Caller reports that Rep. Henry Waxman decided against a hearing to excoriate business executives for recording tax losses attributable to ObamaCare. The reason: not only did the companies have a legal obligation to do so (had they not, Sen. Carl Levin would no doubt be hauling them before his committee one day to decry the fraud on the shareholders); they also would have produced some very embarrassing evidence that ObamaCare is going to drive up health-care costs. The report explains:

Most significantly, documents unearthed by the investigation highlight companies that are considering dumping employees from their current health-care plans in the face of new costs from the health-care law. President Obama repeatedly promised his health-care law would let Americans keep their current insurance if they’re happy with it.

A March 3 internal Verizon memo on the impact health-care law said new taxes on insurance companies and health-care equipment manufacturers will be passed onto employers through higher prices.

Facing such increased costs, employers like Verizon “may consider exiting the health-care market and send employees to the exchanges,” the memo says.

Under the law, companies would pay fines for not providing insurance companies coverage. But, the Verizon memo said, the fines would be “modest” compared to providing coverage for employees.

In a March 25 e-mail, John Deere’s director of labor relations, Kenneth Hugh, said, “We ought to look at … denying coverage and just paying the penalty … we would need to figure out which one was more expensive.” John Deere faces a unique situation because of contracts with its unionized workers.

Whether or not companies are being forced to rescind employee coverage, they may need to raise insurance premiums, the documents show.

The top human resources official at Caterpillar said in a March 23 e-mail that the company will need to “figure out what this will cost us and collect that in increased premiums which we will attribute to the legislation”

Oops. Wrong answer. Bag the hearing. It seems that ObamaCare opponents would do well to get one or more of these execs in front of a committee and let them tell the American people what Obama and Waxman won’t — that ObamaCare isn’t going to guarantee they can keep their insurance and it is going to cost them a bundle. Republicans argue that divided government is needed to check Obama’s leftist agenda. As Waxman’s gambit shows, it’s also the only way to achieve congressional oversight.

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Flotsam and Jetsam

How to kill a senate candidacy: Alex Giannoulias has his bank seized by the Feds. “Whether the issue remains a central one in the race is yet to be seen, but today is surely not a happy day in the Giannoulias camp. GOPers will have a reason to celebrate this weekend.” I think that seat is gone for the Democrats, unless they can pull a Torrecelli.

How to kill cap-and-trade: “The bipartisan climate bill to be unveiled Monday isn’t dead on arrival but it’s not likely to be taken up this year — and not before an immigration bill comes to the Senate floor, according to Democratic aides.”

How to kill the recovery: “Vast tax increases will be inevitable under President Barack Obama’s budget blueprint, the nation’s largest business groups complained on Friday.The groups blasted tax increases on businesses and wealthy individuals and families in the budget in a letter to members of the House and Senate, while warning that escalating public debt threatened the underlying economy.”

Kill the slams on the tea partiers! “House Majority Leader Steny H. Hoyer said Thursday he and Speaker Nancy Pelosi made a mistake when they called anti-health care protests ‘un-American’ last year.” Maybe he figured out these people are voters.

Naturally the Iranian Lobby — NIAC and Peace Now — want to kill sanctions against the mullahs.

Obama is doing more to kill off civility in public debate than any president since Richard Nixon. Charles Krauthammer on his Wall Street speech: “The way — and he‘s done this before — he tries to denigrate, cast out, and to delegitimize any argument against his. And here he’s talking about that it’s not legitimate even to suggest that the bill he’s supporting might encourage a bailout. It’s certainly possible [to] argue [that] because of the provisions in the ball, and one in particular, where the Treasury has the right to designate any entity — private entity – as a systemic risk, and then to immediately, even without Congress approving and appropriating money, to guarantee all the bad loans. That is an invitation to a bailout. Now, the president could argue otherwise, but to say that to raise this issue is illegitimate is simply appalling.”

Obama continues to kill off the freedom agenda and democracy promotion: “Just this week word came that the administration cut funds to promote democracy in Egypt by half. Programs in countries like Jordan and Iran have also faced cuts. Then there are the symbolic gestures: letting the Dalai Lama out the back door, paltry statements of support for Iranian demonstrators, smiling and shaking hands with Mr. Chávez, and so on. Daniel Baer, a representative from the State Department who participated in the [George W. Bush] conference [on dissidents’ use of new media tools], dismissed the notion that the White House has distanced itself from human-rights promotion as a baseless ‘meme’ when I raised the issue. But in fact all of this is of a piece of Mr. Obama’s overarching strategy to make it abundantly clear that he is not his predecessor.”

Making some progress in killing off business with Iran: “Two giant American accounting firms, PricewaterhouseCoopers and Ernst and Young, disclosed this week that they no longer had any affiliation with Iranian firms, becoming the latest in a string of companies to publicly shun the Islamic republic. Following a similar decision by KPMG earlier this month, that leaves none of the Big Four audit firms with any ties to Iran. In recent months, other companies have announced that they would stop sales, cut back business or end affiliations with Iranian firms, including General Electric, Huntsman, Siemens, Caterpillar and Ingersoll Rand. Daimler said it would sell a minority share in an Iranian engine maker. An Italian firm said it would pull out after its current gas contracts ended. And the Malaysian state oil company cut off gasoline shipments to Iran, following similar moves by Royal Dutch Shell and trading giants like Vitol, Glencore and Trafigura.”

How to kill a senate candidacy: Alex Giannoulias has his bank seized by the Feds. “Whether the issue remains a central one in the race is yet to be seen, but today is surely not a happy day in the Giannoulias camp. GOPers will have a reason to celebrate this weekend.” I think that seat is gone for the Democrats, unless they can pull a Torrecelli.

How to kill cap-and-trade: “The bipartisan climate bill to be unveiled Monday isn’t dead on arrival but it’s not likely to be taken up this year — and not before an immigration bill comes to the Senate floor, according to Democratic aides.”

How to kill the recovery: “Vast tax increases will be inevitable under President Barack Obama’s budget blueprint, the nation’s largest business groups complained on Friday.The groups blasted tax increases on businesses and wealthy individuals and families in the budget in a letter to members of the House and Senate, while warning that escalating public debt threatened the underlying economy.”

Kill the slams on the tea partiers! “House Majority Leader Steny H. Hoyer said Thursday he and Speaker Nancy Pelosi made a mistake when they called anti-health care protests ‘un-American’ last year.” Maybe he figured out these people are voters.

Naturally the Iranian Lobby — NIAC and Peace Now — want to kill sanctions against the mullahs.

Obama is doing more to kill off civility in public debate than any president since Richard Nixon. Charles Krauthammer on his Wall Street speech: “The way — and he‘s done this before — he tries to denigrate, cast out, and to delegitimize any argument against his. And here he’s talking about that it’s not legitimate even to suggest that the bill he’s supporting might encourage a bailout. It’s certainly possible [to] argue [that] because of the provisions in the ball, and one in particular, where the Treasury has the right to designate any entity — private entity – as a systemic risk, and then to immediately, even without Congress approving and appropriating money, to guarantee all the bad loans. That is an invitation to a bailout. Now, the president could argue otherwise, but to say that to raise this issue is illegitimate is simply appalling.”

Obama continues to kill off the freedom agenda and democracy promotion: “Just this week word came that the administration cut funds to promote democracy in Egypt by half. Programs in countries like Jordan and Iran have also faced cuts. Then there are the symbolic gestures: letting the Dalai Lama out the back door, paltry statements of support for Iranian demonstrators, smiling and shaking hands with Mr. Chávez, and so on. Daniel Baer, a representative from the State Department who participated in the [George W. Bush] conference [on dissidents’ use of new media tools], dismissed the notion that the White House has distanced itself from human-rights promotion as a baseless ‘meme’ when I raised the issue. But in fact all of this is of a piece of Mr. Obama’s overarching strategy to make it abundantly clear that he is not his predecessor.”

Making some progress in killing off business with Iran: “Two giant American accounting firms, PricewaterhouseCoopers and Ernst and Young, disclosed this week that they no longer had any affiliation with Iranian firms, becoming the latest in a string of companies to publicly shun the Islamic republic. Following a similar decision by KPMG earlier this month, that leaves none of the Big Four audit firms with any ties to Iran. In recent months, other companies have announced that they would stop sales, cut back business or end affiliations with Iranian firms, including General Electric, Huntsman, Siemens, Caterpillar and Ingersoll Rand. Daimler said it would sell a minority share in an Iranian engine maker. An Italian firm said it would pull out after its current gas contracts ended. And the Malaysian state oil company cut off gasoline shipments to Iran, following similar moves by Royal Dutch Shell and trading giants like Vitol, Glencore and Trafigura.”

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The GOP in the Wake of ObamaCare

We are now a week out from the passage of ObamaCare, so it’s worth considering what approach the Republican party might take in the months ahead.

The first thing is to understand that, politically speaking, the GOP is in extremely good shape. President Obama succeeded in passing health care legislation — but he has not succeeded in making it popular. If you analyze the different polls that have come out since the passage of ObamaCare, it shows several things: the president received a slight bump, less than usual for a legislative victory of this magnitude, and it is in the process of evaporating. And because both parties are determined to make the midterm elections a referendum on ObamaCare — Democrats because they don’t want to leave it undefended, Republicans because they believe the public’s dislike of this legislation is intense and won’t recede — that is what the elections will largely be about.

Second, Republicans and their allies need to ensure that the president and Democrats now have full ownership of ObamaCare. That means creating benchmarks, such as when we begin to see increases in premiums and taxes, cuts in Medicare Advantage, employers dumping employees into the exchange once it’s up and running, an increase in the oversight activity of the IRS (which is responsible for enforcing this new mandate), and more.

The GOP also needs to highlight the negative, radiating effects of ObamaCare, as companies adjust to the new world they inhabit. For example, Caterpillar said ObamaCare would cost the company at least $100 million more in the first year alone. Medical-device maker Medtronic said that new taxes on its products could force it to lay off a thousand workers. The telecom giant Verizon warned that its costs will increase in the short term. As the Wall Street Journal editorialized last week, “Businesses around the country are making the same calculations 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.”

In addition to highlighting the damaging effects of ObamaCare, Republicans need to sear into public consciousness the many false promises and assurances Mr. Obama and Democrats made. Here the stimulus package offers some helpful guidance. In order to pass it, and shortly after he signed it into law, the president and his team made guarantees about how many jobs it would create, including how unemployment would not rise above 8 percent. But a strange thing happened along the way. Unemployment topped 10 percent last year. We have lost rather than gained millions of jobs. The high expectations Obama had created were shattered, and with it the beginning of Obama’s credibility. And this, in turn, begins the downward political slide of the Democratic party under Obama.

The same thing can happen, in spades, with health care. Democrats know it, too. Just a few days ago, for example, Senator Claire McCaskill of Missouri said her party has probably oversold the legislation that just became law. “The side on which I’m on, that voted for the bill, probably is overpromising, [has] not been clear enough about the fact that this is going to be an incremental approach over time, [and] the benefits aren’t going to be felt by most Americans immediately,” McCaskill told MSNBC’s Joe Scarborough.

Memo to Ms. McCaskill: It’s a little late, Senator. The president has made, repeatedly and on the record, extravagant claims. He promised the moon and the stars. When those things not only don’t come to pass, but when people see that their lives are worse off thanks to ObamaCare, there will be a very high political price to pay.

Finally, the GOP needs to connect ObamaCare to the broader narrative it plays into: the modern-Democratic party is fiscally irresponsible to the point of recklessness, it is clueless when it comes to creating economic growth, and Democrats are enchanted with the prospect of centralizing power and control. At a time when trust in the federal government is near an all-time low and disgust with the federal government is near an all-time high, Barack Obama and Democrats have become, as never before, the party of big government.

This is something the GOP can work with.

What will matter, when all is said and done, are the real-world effects of ObamaCare. If it succeeds, then Obama and Democrats will have taken important strides to help them retain their majority status in America. If on the other hand you believe, as I do, that ObamaCare is a pernicious piece of legislation, one that will have terribly damaging consequences as its provisions uncoil, then Democrats will have inflicted on themselves enormous damage.

Both parties have waged everything on this fight. The midterm elections will give us an early indication of which one bet the right way.

We are now a week out from the passage of ObamaCare, so it’s worth considering what approach the Republican party might take in the months ahead.

The first thing is to understand that, politically speaking, the GOP is in extremely good shape. President Obama succeeded in passing health care legislation — but he has not succeeded in making it popular. If you analyze the different polls that have come out since the passage of ObamaCare, it shows several things: the president received a slight bump, less than usual for a legislative victory of this magnitude, and it is in the process of evaporating. And because both parties are determined to make the midterm elections a referendum on ObamaCare — Democrats because they don’t want to leave it undefended, Republicans because they believe the public’s dislike of this legislation is intense and won’t recede — that is what the elections will largely be about.

Second, Republicans and their allies need to ensure that the president and Democrats now have full ownership of ObamaCare. That means creating benchmarks, such as when we begin to see increases in premiums and taxes, cuts in Medicare Advantage, employers dumping employees into the exchange once it’s up and running, an increase in the oversight activity of the IRS (which is responsible for enforcing this new mandate), and more.

The GOP also needs to highlight the negative, radiating effects of ObamaCare, as companies adjust to the new world they inhabit. For example, Caterpillar said ObamaCare would cost the company at least $100 million more in the first year alone. Medical-device maker Medtronic said that new taxes on its products could force it to lay off a thousand workers. The telecom giant Verizon warned that its costs will increase in the short term. As the Wall Street Journal editorialized last week, “Businesses around the country are making the same calculations 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.”

In addition to highlighting the damaging effects of ObamaCare, Republicans need to sear into public consciousness the many false promises and assurances Mr. Obama and Democrats made. Here the stimulus package offers some helpful guidance. In order to pass it, and shortly after he signed it into law, the president and his team made guarantees about how many jobs it would create, including how unemployment would not rise above 8 percent. But a strange thing happened along the way. Unemployment topped 10 percent last year. We have lost rather than gained millions of jobs. The high expectations Obama had created were shattered, and with it the beginning of Obama’s credibility. And this, in turn, begins the downward political slide of the Democratic party under Obama.

The same thing can happen, in spades, with health care. Democrats know it, too. Just a few days ago, for example, Senator Claire McCaskill of Missouri said her party has probably oversold the legislation that just became law. “The side on which I’m on, that voted for the bill, probably is overpromising, [has] not been clear enough about the fact that this is going to be an incremental approach over time, [and] the benefits aren’t going to be felt by most Americans immediately,” McCaskill told MSNBC’s Joe Scarborough.

Memo to Ms. McCaskill: It’s a little late, Senator. The president has made, repeatedly and on the record, extravagant claims. He promised the moon and the stars. When those things not only don’t come to pass, but when people see that their lives are worse off thanks to ObamaCare, there will be a very high political price to pay.

Finally, the GOP needs to connect ObamaCare to the broader narrative it plays into: the modern-Democratic party is fiscally irresponsible to the point of recklessness, it is clueless when it comes to creating economic growth, and Democrats are enchanted with the prospect of centralizing power and control. At a time when trust in the federal government is near an all-time low and disgust with the federal government is near an all-time high, Barack Obama and Democrats have become, as never before, the party of big government.

This is something the GOP can work with.

What will matter, when all is said and done, are the real-world effects of ObamaCare. If it succeeds, then Obama and Democrats will have taken important strides to help them retain their majority status in America. If on the other hand you believe, as I do, that ObamaCare is a pernicious piece of legislation, one that will have terribly damaging consequences as its provisions uncoil, then Democrats will have inflicted on themselves enormous damage.

Both parties have waged everything on this fight. The midterm elections will give us an early indication of which one bet the right way.

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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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RE: ObamaCare Hits Home

Verizon and Caterpillar aren’t the only employers warning of rising health-care costs due to ObamaCare:

Deere & Company, Iowa’s largest manufacturing employer, said in a statement this morning that the recently-passed health care legislation will cost the company $150 million after tax this year.The company said the impact would be felt primarily in the second quarter, between April 1 and July 1.

Deere spokesman Ken Golden said the charge would be taken as a one-time cost to cover the new tax the Health Care bill imposes on subsidies paid to corporations for retiree prescription costs under a 2003 Medicare bill.

“The 2003 legislation encouraged companies to stay in the game and continue to fund their retirees’ prescriptions,” Golden said. “Otherwise, the retirees would go onto the Medicare prescription program which would cost the government more money.”

Manufacturers of medical devices are also sending out warnings. (“Medical-device maker Medtronic warned that new taxes on its products could force it to lay off a thousand workers.”) The Boston Herald explains:

A dire warning from Bay State medical-device companies that a new sales tax in the federal health-care law could force their plants — and thousands of jobs — out of the country has rattled Gov. Deval Patrick, a staunch backer of the law and pal President Obama.

“This bill is a jobs killer,” said Ernie Whiton, chief financial officer of Chelmsford’s Zoll Medical Corp., which employs about 650 people in Massachusetts. Many of those employees work in Zoll’s local manufacturing facility making heart defibrillators. “We could be forced to (move) manufacturing overseas if we can’t pass along these costs to our customers,” said Whiton.

The threat — echoed by others in the critical Massachusetts industry — had the governor vowing to intervene to block the sales tax impact. “I am obviously concerned about the medical device burden here on the commonwealth, which has a very robust industry around medical devices,” Patrick said yesterday.

Well, he wasn’t concerned enough to lobby against the bill before it was passed. But this issue and other predictable consequences of ObamaCare will no doubt absorb much of the debate between now and November. Hey, if Deval Patrick thinks it’s a jobs killer, perhaps “Repeal and Reform” isn’t so far-fetched after all.

Verizon and Caterpillar aren’t the only employers warning of rising health-care costs due to ObamaCare:

Deere & Company, Iowa’s largest manufacturing employer, said in a statement this morning that the recently-passed health care legislation will cost the company $150 million after tax this year.The company said the impact would be felt primarily in the second quarter, between April 1 and July 1.

Deere spokesman Ken Golden said the charge would be taken as a one-time cost to cover the new tax the Health Care bill imposes on subsidies paid to corporations for retiree prescription costs under a 2003 Medicare bill.

“The 2003 legislation encouraged companies to stay in the game and continue to fund their retirees’ prescriptions,” Golden said. “Otherwise, the retirees would go onto the Medicare prescription program which would cost the government more money.”

Manufacturers of medical devices are also sending out warnings. (“Medical-device maker Medtronic warned that new taxes on its products could force it to lay off a thousand workers.”) The Boston Herald explains:

A dire warning from Bay State medical-device companies that a new sales tax in the federal health-care law could force their plants — and thousands of jobs — out of the country has rattled Gov. Deval Patrick, a staunch backer of the law and pal President Obama.

“This bill is a jobs killer,” said Ernie Whiton, chief financial officer of Chelmsford’s Zoll Medical Corp., which employs about 650 people in Massachusetts. Many of those employees work in Zoll’s local manufacturing facility making heart defibrillators. “We could be forced to (move) manufacturing overseas if we can’t pass along these costs to our customers,” said Whiton.

The threat — echoed by others in the critical Massachusetts industry — had the governor vowing to intervene to block the sales tax impact. “I am obviously concerned about the medical device burden here on the commonwealth, which has a very robust industry around medical devices,” Patrick said yesterday.

Well, he wasn’t concerned enough to lobby against the bill before it was passed. But this issue and other predictable consequences of ObamaCare will no doubt absorb much of the debate between now and November. Hey, if Deval Patrick thinks it’s a jobs killer, perhaps “Repeal and Reform” isn’t so far-fetched after all.

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ObamaCare Hits Home

Obama is heading out to sell ObamaCare. But investors and employees are getting a different message. This report explains:

Caterpiller Inc. said Wednesday it will take a $100 million charge to earnings this quarter to reflect taxes stemming from the newly enacted U.S. health-care legislation.

The world’s largest construction equipment manufacturer by sales warned last week that provisions in the legislation would subject it to federal income taxes on the subsidies it receives for providing prescription drug benefits for its retirees and their spouses.

Since the Medicare Part D program was enacted in 2003, the Peoria, Ill., company and more than 3,500 others that already provided drug-benefit expenses to retirees have received tax-free subsidies as an incentive to maintain their drug programs.

The subsidies average $665 per person covered by a company-sponsored prescription program, according to benefits consultant Towers Watson. (Please see related article on page B9.)

About 40,000 Caterpillar retirees receive company-sponsored drug benefits, which are more generous than Medicare’s drug plan, which requires recipients to pay some out-of-pocket expenses.

The charge is expected to be a one-time cost, but Caterpillar argues that higher taxes and other potential cost increases related to insurance mandates in the legislation will hinder the company’s recovery this year after a 75% profit plunge in 2009.

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

One recalls that Caterpillar also played a part in unveiling the president’s lack of credibility on the stimulus plan. Obama visited a Caterpillar facility to tout his mammoth Keynesian stimulus strategy, which was to save millions of jobs and cap unemployment at 8 percent; Caterpiller subsequently announced more layoffs.

The White House keeps expecting Obama to persuade ordinary Americans of things that aren’t so, to induce them to ignore their own life experience. But reality intrudes and voters become less enamored, not more so, of the president’s statist policies and political spin. While the Left may be thrilled by the “historic” legislation, voters will be learning a different lesson over the months that follow and will have their chance to register their views at the ballot box.

Obama is heading out to sell ObamaCare. But investors and employees are getting a different message. This report explains:

Caterpiller Inc. said Wednesday it will take a $100 million charge to earnings this quarter to reflect taxes stemming from the newly enacted U.S. health-care legislation.

The world’s largest construction equipment manufacturer by sales warned last week that provisions in the legislation would subject it to federal income taxes on the subsidies it receives for providing prescription drug benefits for its retirees and their spouses.

Since the Medicare Part D program was enacted in 2003, the Peoria, Ill., company and more than 3,500 others that already provided drug-benefit expenses to retirees have received tax-free subsidies as an incentive to maintain their drug programs.

The subsidies average $665 per person covered by a company-sponsored prescription program, according to benefits consultant Towers Watson. (Please see related article on page B9.)

About 40,000 Caterpillar retirees receive company-sponsored drug benefits, which are more generous than Medicare’s drug plan, which requires recipients to pay some out-of-pocket expenses.

The charge is expected to be a one-time cost, but Caterpillar argues that higher taxes and other potential cost increases related to insurance mandates in the legislation will hinder the company’s recovery this year after a 75% profit plunge in 2009.

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

One recalls that Caterpillar also played a part in unveiling the president’s lack of credibility on the stimulus plan. Obama visited a Caterpillar facility to tout his mammoth Keynesian stimulus strategy, which was to save millions of jobs and cap unemployment at 8 percent; Caterpiller subsequently announced more layoffs.

The White House keeps expecting Obama to persuade ordinary Americans of things that aren’t so, to induce them to ignore their own life experience. But reality intrudes and voters become less enamored, not more so, of the president’s statist policies and political spin. While the Left may be thrilled by the “historic” legislation, voters will be learning a different lesson over the months that follow and will have their chance to register their views at the ballot box.

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