Details of Health Plan
How does the plan effect corporate costs?
Some are complaining that the published write offs that ATT, John Deere, Caterpillar, etc., are publishing in the media indicates just how bad the plan is!
Actually here is what is happening:
The government for a long time has been subsidizing these companies who provide some of their workers with prescription costs. 30% of the costs in fact are returned to the corporations from tax money.
But, the corporations weren't forced to deduct the donation from their deductions on their tax forms! They got the money and an additional 30% + less tax when they filed for the deductions!
The mew plan disallows them deducting the portion the government pays!
So, now they are making a "Non-cash" write down to their books, in advance, for not being able to claim a deduction which the government gave them in cash!
So, that means they will also pay less taxes now due to the write-down also!!!
The write-down costs them no cash. Just that they will now pay less taxes than before.
I have concluded that the right-wingers do not wish to know the facts---they simply hate democrats.