Commentary Magazine


Topic: Commerce Secretary

Flotsam and Jetsam

Ben Smith spots bias at the Washington Post.

CEOs spots the worst place to do business: “California ranks last among the states and Washington D.C. as a place to do business, according to Chief Executive magazine. It is the second year in a row that the state was given that dubious distinction.”

Stuart Rothenberg spots trouble for Russ Feingold: “When former Wisconsin Gov. Tommy Thompson (R) announced recently that he wouldn’t enter the 2010 Senate race and challenge Democratic Sen. Russ Feingold, many of us crossed the state off our list of competitive races. Maybe we were a bit premature. Two more Republicans — former state Commerce Secretary Dick Leinenkugel and businessman Ron Johnson — are joining the two GOPers already in the contest, businessman Terrence Wall and Dave Westlake, and the newly expanded field is just one reason for reconsidering my knee-jerk judgment. None of these four hopefuls possesses all of the qualities of the ideal challenger. But this cycle, Republicans may not need ideal challengers to win, even in the Badger State.”

And Rothenberg spots a pickup possibility for the GOP in the Hawaii House special election. “According to recent polling, Republicans now have a legitimate chance to takeover Hawaii’s 1st District in this month’s special election. What was once only a scenario now looks like a real possibility, and even Democratic observers are worried about the race.”

Victor Davis Hanson spots the pattern: “The jihadist symptoms of Major Hasan were ignored; General Casey lamented the possible ramifications of Hasan’s killings to the army’s diversity program; the warnings of Mr. Mutallab’s father about his son’s jihadist tendencies were ignored but the latter’s Miranda rights were not; and the Times Square would-be bomber was quite rashly and on little evidence falsely equated with a ‘white’ bomber with perhaps domestic-terrorism overtones (when it looks like there is a Pakistani radical-Islamist connection) — a sort of pattern has been established, one both implicit and explicit.”

It’s not hard to spot a rising GOP star: “Once again showing that he means to shake up Trenton, Gov. Christopher J. Christie declined on Monday to reappoint a sitting justice to the New Jersey Supreme Court, instead appointing someone who he said would show the restraint that was missing from the court. … Speaking to reporters in Trenton, Mr. Christie had only kind words for Justice Wallace, but he described the historically liberal court as ‘out of control’ over the last three decades, usurping the roles of the governor and the Legislature in setting social and tax policies.” (As a bonus, Christie succeeded in freaking out the Democrats: “New Jersey Democrats, furious with Gov. Chris Christie over his decision to replace a moderate African-American on the state Supreme Court, vowed Tuesday not even to consider the Republican governor’s nominee.”)

Fox News spots the latest evidence that Obama is failing to thwart the mullahs’ nuclear ambitions or to isolate the regime. “Two of the world’s worst dictators are thumbing their noses at the U.N. as it tries to shore up support for increased sanctions against Iran. According to press reports, Iran secretly agreed last month to provide Zimbabwe with oil in return for exclusive access to the crippled African nation’s precious uranium ore.”

Jake Tapper spots a sign of improvement in the Obama administration’s terror-fighting operation: “ABC News has learned that the High-Value Interrogation Group, or HIG, is involved in the interrogation of Faisal Shahzad, the man arrested last night in the investigation into the failed Times Square bombing. After the arrest of the failed Christmas Day 2009 bomber Umar Farouq Abdulmutallab, the Obama administration was criticized for not having yet made operational the HIG, a special interrogation team for high-value terrorist suspects, though the Special Task Force on Interrogations and Transfer Policies had announced its recommendation to form such a group in August 2009.”

Newsbusters spots the left down in the dumps that the Times Square bomber wasn’t a Tea Partier: “It appears that it wasn’t only media types such as MSNBC’s Contessa Brewer who were disappointed that the Times Square bombing suspect turned out to be a Muslim. They were joined by virtually the entire leftwing blogosphere in their frustration that the suspect wasn’t a tea party activist or a member of a ‘rightwing’ militia group.”

Ben Smith spots bias at the Washington Post.

CEOs spots the worst place to do business: “California ranks last among the states and Washington D.C. as a place to do business, according to Chief Executive magazine. It is the second year in a row that the state was given that dubious distinction.”

Stuart Rothenberg spots trouble for Russ Feingold: “When former Wisconsin Gov. Tommy Thompson (R) announced recently that he wouldn’t enter the 2010 Senate race and challenge Democratic Sen. Russ Feingold, many of us crossed the state off our list of competitive races. Maybe we were a bit premature. Two more Republicans — former state Commerce Secretary Dick Leinenkugel and businessman Ron Johnson — are joining the two GOPers already in the contest, businessman Terrence Wall and Dave Westlake, and the newly expanded field is just one reason for reconsidering my knee-jerk judgment. None of these four hopefuls possesses all of the qualities of the ideal challenger. But this cycle, Republicans may not need ideal challengers to win, even in the Badger State.”

And Rothenberg spots a pickup possibility for the GOP in the Hawaii House special election. “According to recent polling, Republicans now have a legitimate chance to takeover Hawaii’s 1st District in this month’s special election. What was once only a scenario now looks like a real possibility, and even Democratic observers are worried about the race.”

Victor Davis Hanson spots the pattern: “The jihadist symptoms of Major Hasan were ignored; General Casey lamented the possible ramifications of Hasan’s killings to the army’s diversity program; the warnings of Mr. Mutallab’s father about his son’s jihadist tendencies were ignored but the latter’s Miranda rights were not; and the Times Square would-be bomber was quite rashly and on little evidence falsely equated with a ‘white’ bomber with perhaps domestic-terrorism overtones (when it looks like there is a Pakistani radical-Islamist connection) — a sort of pattern has been established, one both implicit and explicit.”

It’s not hard to spot a rising GOP star: “Once again showing that he means to shake up Trenton, Gov. Christopher J. Christie declined on Monday to reappoint a sitting justice to the New Jersey Supreme Court, instead appointing someone who he said would show the restraint that was missing from the court. … Speaking to reporters in Trenton, Mr. Christie had only kind words for Justice Wallace, but he described the historically liberal court as ‘out of control’ over the last three decades, usurping the roles of the governor and the Legislature in setting social and tax policies.” (As a bonus, Christie succeeded in freaking out the Democrats: “New Jersey Democrats, furious with Gov. Chris Christie over his decision to replace a moderate African-American on the state Supreme Court, vowed Tuesday not even to consider the Republican governor’s nominee.”)

Fox News spots the latest evidence that Obama is failing to thwart the mullahs’ nuclear ambitions or to isolate the regime. “Two of the world’s worst dictators are thumbing their noses at the U.N. as it tries to shore up support for increased sanctions against Iran. According to press reports, Iran secretly agreed last month to provide Zimbabwe with oil in return for exclusive access to the crippled African nation’s precious uranium ore.”

Jake Tapper spots a sign of improvement in the Obama administration’s terror-fighting operation: “ABC News has learned that the High-Value Interrogation Group, or HIG, is involved in the interrogation of Faisal Shahzad, the man arrested last night in the investigation into the failed Times Square bombing. After the arrest of the failed Christmas Day 2009 bomber Umar Farouq Abdulmutallab, the Obama administration was criticized for not having yet made operational the HIG, a special interrogation team for high-value terrorist suspects, though the Special Task Force on Interrogations and Transfer Policies had announced its recommendation to form such a group in August 2009.”

Newsbusters spots the left down in the dumps that the Times Square bomber wasn’t a Tea Partier: “It appears that it wasn’t only media types such as MSNBC’s Contessa Brewer who were disappointed that the Times Square bombing suspect turned out to be a Muslim. They were joined by virtually the entire leftwing blogosphere in their frustration that the suspect wasn’t a tea party activist or a member of a ‘rightwing’ militia group.”

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RE: RE: ObamaCare Hits Home

This report begins to tally up the immediate hit on American employers from ObamaCare:

In the wake of Washington’s health-care overhaul, some companies are taking big one-time charges for anticipated costs, fanning tension with the administration over the legislation’s impact on corporate America.

Three companies that were among vocal opponents of the legislation have warned they would see an immediate impact on their earnings as a result of the loss of deductions on tax-free subsidies they receive for providing retiree prescription-drug benefits.

On Thursday, Deere & Co. said it would take a $150 million one-time charge in the current quarter related to the loss of deductions. Earlier in the week, Caterillar Inc. reported a $100 million charge and AK Steel recorded a $31 million charge.

Beginning in 2006, companies have received a 28% federal subsidy, up to $1,330 per retiree, tax-free, to help pay for prescription-drug coverage. Until now, companies could deduct the subsidy from their taxes, essentially getting a second benefit from the money. Under the new law, companies will no longer be able to deduct the subsidy, but it remains tax-free.

Although the changes don’t go into effect until 2013, companies say they have to take the charge to earnings now, to reflect the loss of the future tax deductions. In all, the S&P 500 companies will take a combined hit of $4.5 billion to first-quarter earnings, estimates David Zion, an analyst with Credit Suisse. [emphasis added]

That is right — $5.4 billion from a single tax change, money that can’t be invested in new plants or used to hire new workers. The administration’s reaction? Commerce Secretary Gary Locke says, “It is simply not responsible to suggest that the new health-care law is bad for business.” These companies have a legal obligation to accurately assess earnings, so what would Locke have them do — conceal the hit and risk lawsuits from shareholders and prosecution by his colleagues at the SEC? It’s absurd to suggest that businesses that will suffer from the mandates, fines, and taxes imposed should essentially shut up about the adverse consequences of the legislation.

Robert Gibbs adds to the air of dismissiveness, saying, “Companies not only get the subsidy tax-free, but they then deduct the amount. Our bill simply closes the loophole.” Yes, by White House standards, raising taxes by $5.4B is no more than a loophole. If you have the sense that no one in the White House has much sympathy for or understands private industry, you are right. If they did, we would not now be facing a gargantuan tax hike — and more to follow with the expiration of the Bush tax cuts.

This report begins to tally up the immediate hit on American employers from ObamaCare:

In the wake of Washington’s health-care overhaul, some companies are taking big one-time charges for anticipated costs, fanning tension with the administration over the legislation’s impact on corporate America.

Three companies that were among vocal opponents of the legislation have warned they would see an immediate impact on their earnings as a result of the loss of deductions on tax-free subsidies they receive for providing retiree prescription-drug benefits.

On Thursday, Deere & Co. said it would take a $150 million one-time charge in the current quarter related to the loss of deductions. Earlier in the week, Caterillar Inc. reported a $100 million charge and AK Steel recorded a $31 million charge.

Beginning in 2006, companies have received a 28% federal subsidy, up to $1,330 per retiree, tax-free, to help pay for prescription-drug coverage. Until now, companies could deduct the subsidy from their taxes, essentially getting a second benefit from the money. Under the new law, companies will no longer be able to deduct the subsidy, but it remains tax-free.

Although the changes don’t go into effect until 2013, companies say they have to take the charge to earnings now, to reflect the loss of the future tax deductions. In all, the S&P 500 companies will take a combined hit of $4.5 billion to first-quarter earnings, estimates David Zion, an analyst with Credit Suisse. [emphasis added]

That is right — $5.4 billion from a single tax change, money that can’t be invested in new plants or used to hire new workers. The administration’s reaction? Commerce Secretary Gary Locke says, “It is simply not responsible to suggest that the new health-care law is bad for business.” These companies have a legal obligation to accurately assess earnings, so what would Locke have them do — conceal the hit and risk lawsuits from shareholders and prosecution by his colleagues at the SEC? It’s absurd to suggest that businesses that will suffer from the mandates, fines, and taxes imposed should essentially shut up about the adverse consequences of the legislation.

Robert Gibbs adds to the air of dismissiveness, saying, “Companies not only get the subsidy tax-free, but they then deduct the amount. Our bill simply closes the loophole.” Yes, by White House standards, raising taxes by $5.4B is no more than a loophole. If you have the sense that no one in the White House has much sympathy for or understands private industry, you are right. If they did, we would not now be facing a gargantuan tax hike — and more to follow with the expiration of the Bush tax cuts.

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