Layoffs, Job Losses, and Obama Statement Expiration Dates

Some mornings are easier than others.  While I kick back and enjoy my coffee for a change, check out this great compilation of unfortunate facts from the folks at the House Republican Conference.  First, a look at what the House GOP calls “an overdose of layoffs and job losses”:

U.S. employers have warned that President Obama’s government takeover of health care would destroy American jobs and harm our economy.  President Obama’s health care law is not yet a week old, but already we’re seeing the real-life impact that ObamaCare’s job-killing tax hikes and health care costs are having on America’s employers.

Medtronic
“Medtronic Inc. CEO Bill Hawkins also tore into the tax. ‘This will make us one of the highest-taxed regions in the world, and that’s going to have an impact on the appetite for people to invest in medical innovation,’ Hawkins told the Wall Street Journal, adding that Medtronic could wind up slashing its workforce by 1,000 to absorb the cost of the excise tax.” (Mass Device, 3/23/10)

Zoll Medical Group
“‘This bill is a jobs killer,’ said Ernie Whiton, chief financial officer of Chelmsford’s Zoll Medical Corp., which employs about 650 people in Massachusetts. Many of those employees work in Zoll’s local manufacturing facility making heart defibrillators. ‘We could be forced to (move) manufacturing overseas if we can’t pass along these costs to our customers,’ said Whiton.” (The Boston Herald, 3/25/10)

Theken
“Randy Theken, founder of a handful of Akron-based spinal implant companies that work under the Theken name, said he, too, expects the tax to slow research-and-development efforts and hurt medical device companies. ‘This could also be the first time in decades that we’ve seen medical device manufacturers having to lay off personnel,’ Mr. Theken said.” (Cran’s Cleveland Business, 3/29/10)

Sallie Mae
“The reforms passed Sunday night as part of the health-care reform package could prompt student lender Sallie Mae — which employs 700 people at a Muncie call center — to cut a quarter of its workforce or close its Muncie office outright. The student lender has estimated it could cut its 8,600-member workforce by as many as 2,500 and reduce its locations nationally from 25 to a half dozen.” (The Muncie Star Press, Sallie Mae Could Cut Workforce, Close Local Call Center, 3/23/10)

“Unless the U.S. Senate acts, the Sallie Mae facility in Lynn Haven likely will start ‘immediate’ layoffs due to health care legislation that keeps private loan providers from originating student loans, officials said Monday. ‘Quite frankly, I’m very saddened,’ said Renee Mang, Sallie Mae senior vice president in Lynn Haven.” (Panama News Herald, 3/22/10)

NOTE: Yesterday we launched the ObamaCare Flatlines highlighting how ObamaCare has forced job-killing taxes on America’s small businesses. Here is an update from last night on Prudential Financial:

Prudential Financial
“Insurer Prudential Financial Inc. said Monday that it will take a $100 million charge in the first quarter in relation to the recent health care overhaul legislation. Prudential joins a growing list of companies that have said they will take accounting charges because of the health care bills.” (The Associated Press, Prudential to Take $100M Health Care Charge in 1Q, 3/29/10)

Then, what they call “an overdose of job-killing taxes” (the list just keeps getting bigger and bigger):

By The Numbers: Companies Reeling from ObamaCare’s Job Killing Taxes:

$1,000,000,000: AT&T: “AT&T Inc. will book $1 billion in first-quarter costs related to the health-care law signed this week by President Barack Obama, the most of any U.S. company so far. A change in the tax treatment of Medicare subsidies triggered the non-cash expense, and the company will consider changes to the benefits it offers current and retired workers, Dallas-based AT&T said today in a regulatory filing.” (Bloomberg, 3/26/10)

$150,000,000 to $200,000,000: Medtronic: “The impact of the tax, we estimate, will be roughly $150 to $200 million on Medtronic annually beginning in 2013. We have no immediate plans to eliminate jobs at Medtronic as a result of the device tax or health care reform. We accept our shared fiscal responsibility for coverage expansion, and are very appreciative of our constituent members of Congress from Minnesota and Indiana, in particular, for having significantly tempered the size, distribution and timing of the tax.”  (Release, 3/26/10)

$150,000,000: Deere & Co.: “Farm equipment maker Deere & Co (DE.N) expects after-tax expenses to rise by $150 million this year as a result of the healthcare reform law President Barack Obama signed this week.” (Reuters, 3/25/10)

$100,000,000: Caterpillar: “Caterpillar Inc. lobbied to keep the U.S. from taxing a subsidy on retiree drug benefits. It lost the battle when President Barack Obama signed an almost $1 trillion health-care overhaul into law this week. The world’s largest maker of bulldozers put a price tag on that defeat yesterday: a $100 million charge to earnings.” (Bloomberg, 3/25/10)

$90,000,000: 3M: “3M Co. will record a one-time non-cash charge of up to $90 million, or 12 cents a share, in the first quarter as a result of the U.S. health reform signed into law this week, the company said on Friday. The charge reflects lower tax deductions related to retiree drug benefits.” (Reuters, 3/26/10)

$15,000,000 to $20,000,000: Valero Energy: “Valero Energy Corp said it expects to take a charge to earnings of between $15 million and $20 million in the first quarter due to the new healthcare legislation, and said it expected further tax costs to be calculated later.” (Reuters, 3/26/10)

Finally, for your entertainment, check out a sampling from Jim Geraghty’s “Complete List of Obama Statement Expiration Dates” over at National Review Online.  I love it.

HEALTH CARE MANDATES

STATEMENT: “We’ve got a philosophical difference, which we’ve debated repeatedly, and that is that Senator Clinton believes the only way to achieve universal health care is to force everybody to purchase it. And my belief is, the reason that people don’t have it is not because they don’t want it but because they can’t afford it.” Barack Obama, speaking at a Democratic presidential debate, February 21, 2008.

EXPIRATION DATE: On March 23, 2010, Obama signed the individual mandate into law.

RAISING TAXES

STATEMENT: “No family making less than $250,000 will see any form of tax increase.” (multiple times on the campaign trail)

EXPIRATION DATE: Broken multiple times, including the raised taxes on tobacco, a new tax on indoor tanning salons, but most prominently on February 11, 2010: “President Barack Obama said he is “agnostic” about raising taxes on households making less than $250,000 as part of a broad effort to rein in the budget deficit.”

RECESS APPOINTMENTS

STATEMENT: Then-Senator Obama declared that a recess appointment is “damaged goods” and has “less credibility” than a normal appointment. August 25, 2005.

EXPIRATION DATE: March 27, 2010: “If, in the interest of scoring political points, Republicans in the Senate refuse to exercise that responsibility, I must act in the interest of the American people and exercise my authority to fill these positions on an interim basis.”

Fantastic, isn’t it?  It’s actually a ridiculously long list of phenomenally useful information–this president has left us with a lifetime of material–so be sure to check it out.

In the meantime, the rest of my easy morning awaits.  It’s not that I’m lazy, folks, it’s that … well … with the great stuff above from the GOP and Jim Geraghty, there’s just not that much more for me to say.

Share

Comments

  1. Shackled says:

    His word is his bond, no, his shallow words are our bondage.

  2. We did it says:

    In that photo, he’s giving a shout-out to Cloward & Piven.

  3. Linda B. says:

    Thanks for the report and this looks like a domino effect as one company after another will go down and under. Obama the destroyer! I do not think he is so stupid. This is by design and he is just carrying it out.

    By the way Jeff any good news from your trip to South Carolina? Sorry if I missed it somewhere else.

  4. Boston Blackie says:

    So what is their game plan for companies speaking out against the cost of Obamascare – Wexler wants to drag their arzes before Congress. It would be a cold day in hell before I showed up without being served a subpoena to testify. I didn’t realize it is now a federal offense to speak the truth. Damn a little thing like the constitution and freedom of speech.

  5. These companies are only the beginning and these are only estimated losses. As reality unfolds the losses will increase.

  6. Good summary. This is only the beginning of posted losses on this bill.

  7. Boston Blackie says:

    Correct me if I am wrong, but aren’t these companies required by SEC regulations to report these writedowns. Maybe if anyone in D.C. every worked in the private sector, they would know this. This is also Accounting 101, generally accepted accounting practices – DUH.

  8. Dee says:

    I understand that Henry Waxman has asked?, demanded?, that several of these companies get their butts into DC and explain their numbers. He wants them to testify to congress how they arrived at these facts. One would think that Congress should have asked their opinions BEFORE they voted on the bill. But, that would make too much sense and nothing that makes sense is done by this administration. I hope the CEO’s do not become intimidated and back down on their claims. I agree with Boston Blackie that they would have to come and get me.

  9. Corporate cardiac tamponade says:

    Every corporation, in my opinion, should be flying the Don’t Tread On Me flag outside their place of business. This is beyond ridiculous, and quickly, if not already, irreversible.

  10. Two words says:

    Here is the solution:
    “Waxman, bite me”

Speak Your Mind

*