Health Care Bill Cost to Big Business
President Obama’s recently signed health care legislation has the many benefits of extending health care to over 30 million uninsured Americans while reducing the national deficit over the next decade; however, there are a number of immediate costs to large corporations with thousands of insured employees. Today, Boeing announced that first quarter earnings would be reduced by 20 cents due to a $150 million income tax charge because of the health care legislation. See here.
Just last week Caterpillar took a $100 million tax charge, while Deere & Co. too a $150 million tax charge. See here. Additionally, AT& T will take a $1 billion tax charge while cutting health care benefits to current and retired workers. See here. These are only a few of the large corporations that have announced the added costs that they are suffering due to the passage of the health care legislation. While the new health care legislation has some definite benefits, the costs to businesses trying to recover from the worst economic recession in recent history are real and may put a damper on recovery.