Obamacare: Kickin ass and taking names
From the WSJ:
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.From CNBC:
The world's largest construction equipment manufacturer by sales, warned last week that provisions in the legislation would subject the company to federal income taxes on the subsidies it receives for providing prescription drug benefits for its retirees and their spouses.
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.A here's a nice video of Obama saying "you can measure America's bottom line by looking at Caterpillar's bottom line." Well you just Nuked their bottom line, I guess that means America's bottom line is in for a world of hurt. Thanks Barry!
Most of the higher expense will come in Deere's second quarter, the company said on Thursday. The expense was not included in the company's earlier 2010 forecast, which called for net income of about $1.3 billion.
Caterpillar said on Wednesday it would take a $100 million after-tax charge to earnings in the first quarter because the new law will lower its tax deductions.