From: burd Sent: Wednesday, April 14, 2010
"Starting in 2013, companies that provide prescription-drug benefits for retirees under Medicare can no longer deduct this subsidy from their taxes, due to the federal health-care overhaul signed into law on March 23."
The government provided this subsidy to help offset the financial burden of offering prescription drug benefits to retirees. Beginning in 2013 companies will now be subject to federal income tax on this program. 3M is taking a one time no-cash charge to earnings 1Q 2010 of approximately $85 to $90 million after tax, or approximately 12 cents per share.
Providing medical coverage to its employees has always been a major expense for companies but now the burden has increased. This is not sustainable. With the way government is treating businesses this program may well be coming to an end. So much for "you can keep your current medical program" promised by Obama.
We could see it coming and here it is.
With this group we can expect changes, but don't hope they will be better! We can change DC in November and with that there is hope!!.
"No man's life, liberty, or property is safe while the legislature is in session."
~ Mark Twain, Samuel Langhorne Clemens] (1835-1910