Caterpillar Inc.
said yesterday that they will be hit with $100 million in additional income taxes because of the generous prescription benefits the company provides to retirees.
The tax comes about because Caterpillar provides a plan to retired former employees and their spouses which exceeds Medicare's drug plan.
In other words, Caterpillar has new taxes as a result of looking out for the best interests of its former employees.
A caterpillar spokesman indicated, "A tax like this could not come at a worse time.
" Analysts expect the charge to cost the company $.
13 per share.
Earnings expectations for the period were $.
40 per share before this tax increase, which by the way, is on top of the regular and ongoing income taxes the company already pays at a rate close to 35% each year.
Further in a letter to Nancy Pelosi last week, the company said that the additional costs from health care "reform" [italics added] will put the company "at a disadvantage versus our global competitors which are not similarly burdened.
" Guess what happens now? 1.
How long do you think the nice benefit to retirees will remain in place at the current costs? 2.
How long before companies figure out how to eliminate these higher costs and taxes.
And the solution that is quickly arrived at is, by shipping job and factories and revenues to other countries where they will "not be similarly burdened".
Caterpillar is the top construction equipment manufacturer in the world.
ObamaCare just penalized this excellent company $100 MILLION for doing the right thing with workers.
How long do you think Caterpillar will wait around and take that? Thank you Olympia Snow, Mary Landrieu, Barry Sotero, and Bart Stupak - You've made quite a significant change to Americans...
already!