Oh, Deere! My Caterpillar!

JohnDeere.com: Deere Says New Health Care Reform Law Will Increase 2010 Expense by $150 Million After Tax

MOLINE, Illinois (March 25, 2010) — Deere & Company announced today that the Patient Protection and Affordable Care Act signed into law this week will adversely impact its expenses for fiscal 2010. As a result of the legislation, the company’s expenses are expected to be about $150 million higher on an after-tax basis, primarily in the second quarter. This impact was not included in the 2010 outlook for net income attributable to Deere & Company of approximately $1.3 billion disclosed in the company’s first-quarter earnings report on February 17th.

Certain statements in this report are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to future events and financial performance. These forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated (expressed or implied) by such forward-looking statements, because of, among other things, the risks and uncertainties found in the Company’s press releases and other SEC filings, including the risk factors identified under the heading “Risk Factors” in the “Management’s Discussion and Analysis of Results of Operations and Financial Condition” in the Company’s most recent Annual Report on Form 10-K, as updated by the Company’s Quarterly Reports on Form 10-Q.

Nasdaq.com: Caterpillar To Take $100 Million 1Q Charge Related to Health Bill

CHICAGO -(Dow Jones)- Caterpillar Inc. (CAT) said Wednesday it will take a $ 100 million charge in the first quarter to reflect additional taxes it expects to pay this year because of U.S. health-care legislation.

Okay, folks.  Not only are the Democrats not focusing on unemployment, but they are enacting legislation which will directly stifle business development and growth.

Now, consider the ancillary consequences of this.  That added cost incurred by just these two organizations, John Deere and Caterpillar, will be passed along in the form of increased prices for products made by those two organizations.  Those increased prices will be passed along in the form of increased prices across the stream of commerce, perhaps for food harvested through use of John Deere equipment, and new homes built with the help of Caterpillar machinery.

And this just has to do with prices.  What does this do to these two organizations’ capacity to hire?  Will people already employed be laid off to offset the additional costs incurred due to the Democrats’ health care reform? What effect will that have on the housing markets in the immediate area surrounding John Deere’s and Caterpillar’s headquarters and facilities?

Furthermore, if this is only two organizations, albeit big ones, what does this mean for every other company, large and small, across the country?  What about the major food companies?  The farming co-ops?  Transportation companies?  Energy companies?  What will the added burden caused by the Democrats’ celebrated new law do to food prices at the supermarket?  The price of gasoline at the pump?  Home heating oil?

In the converse, say for a moment that the health care reform bill signed into law on Tuesday was the 253-page legislation proposed last year by Republicans rather than the 2,700-page monstrosity forced upon us by the Democrats. What would the effect be, then?

The Democrats’ bill was scored by the Congressional Budget Office at $940 billion over ten years (without the Medicare “Doc Fix”), and both the CBO and AP admitted that premiums would increase. The 253-page bill, on the other hand, was constructed on three pillars–opening up the private insurance market to interstate competition, allowing individuals and small businesses to pool risk and buy insurance in groups, and modest tort reform–and was scored by the CBO at $61 billion over ten years. (That’s right — “billion,” with a “B.”) Moreover, the CBO said that the Republicans’ plan would decrease premiums.

If the bill signed into law on Tuesday was that bill, a bill which did not contain the taxes which will add $250 million in immediate expenses to John Deere and Caterpillar and a bill which decreased health care costs for Americans rather than increasing them, imaging the downhill consequences.  Companies large and small could afford to hire and to expand.  Prices for everything from food to gas to lawn mowers would not rise as sharply.  The list goes on and on.

What lawmakers on both sides of the aisle need to understand is that everything they do affects America at more than just the superficial level targeted by the legislation or regulation in question.  The reality of the effect of health care reform on the likes of John Deere and Caterpillar should go a long way to reinforce that sentiment.

Share

Comments

  1. William A. Rose says:

    And none of this should surprise anyone. The goal is to destroy America and make all Americans dependent, utterly, on the Government for every aspect of their existence.

    Credit must be given to the liberal-profressives. Well done!

    Nothing good will come of this. I stand by what I said before. this will destroy our economy. And as soon as that happens, everyone look out. It’s gonna be one wild ride. Enjoy to cushy lives you have today. It will change.

  2. Boston Blackie says:

    “What does this do to these two organizations’ capacity to hire?”

    Jeff, I think you have a typo. That should read capacity to SURVIVE???
    I see the writing on the wall for the end of small businesses, like the one that employs yours truly, to survive as well. I think the Saul Alinsky writings should be required reading for all concerned Americans. You need to know how this administration thinks to be able to stop them.

  3. Anonymous says:

    Do you think my repossessed tractors sexy?

  4. Sam says:

    Nothing runs like a Deere, especially not this government.

  5. Lilly says:

    Did you notice that these companies are based in IL? Our state is broke, our un-employment rate is 12.2 (local city is 25%), have high taxes (that they want to increase) and companies are leaving. I see them moving to a friendlier state or country. This administration just makes my head explode!

  6. William A. Rose says:

    Boston Blackie – cock roaches would survive a nuclear blast but they will never adapt to and overcome a hammer. Same holds true for Government.

    Lilly – I used to be a resident of Illinois. I am a good friend of Roger Eddy, a state congressman. I talk to him regularly. He’s told me that the economic situation in Illinois is far worse than anyone realizes. Plus, Illinois has the most restrictive gun laws in the nation. Kinda goes hand in hand, I’d say.

  7. We bring good things to flight says:

    Last one out of Illinois, turn off the lights. Al Gore would appreciate it.

  8. Do you solemnly affirm.... says:

    Illinois. What do you expect from a state that allows fraudulent applications to run for state office. Applications which do not state all aliases used by an applicant.

  9. Mike Hayes says:

    What will be the benefits of the expenditures?

  10. m00pa says:
  11. Jeff Schreiber says:

    M00pa,

    working on this one, but busy today — may be a while

  12. meatbrain says:

    Well done, Jeff. Patriots everywhere applaud your tireless advocacy for corporate welfare.

  13. Jeff Schreiber says:

    Well, gee whiz, Meat … who employs people? You? Me?

    Corporate welfare? How about the welfare of the American people who depend upon those jobs that those companies provide, not only the families who draw paychecks but everyone else down the line of the stream of commerce from everything purchased by those families.

Speak Your Mind

*