Tax Costs Money
Mar 27th, 2010 by David Anderson
You likely heard of the billion dollar charge off that AT&T is facing because of Obama Care as well as the 9 figure charges for other companies. What you may not have heard was that these companies are now considering dropping the perscription drug coverage because the tax incentive to keep them off the government plan is removed. It will cost the govenment twice as much when those people go to the government plan. Instead of making money, that portion of the plan will be a net loss of the magnitude of 3 fold.
Too bad the CBO doesn’t do dynamic scoring.
If the administration understood why the Bush perscription drug benefit cost only 75% of projection, it would have known that it was based on using market principles to encourage competition and preserving private plans. It was not a “loop hole” to keep big corporations from paying taxes. Fine, you raised taxes to get at “big corporations”. The problem is that you can’t have a strong economy and envy in the same bill. You have to choose. It appears they did.
[...] This post was mentioned on Twitter by DelawarePolitics.net, delawareBNN. delawareBNN said: DelawarePolitics.net: Tax Costs Money: You likely heard of the billion dollar charge off that AT&T is facing becau… http://bit.ly/b1kBlD [...]