Let The Layoffs Begin:AT&T will take $1B non-cash charge for health care
AT&T Inc. will take a $1 billion non-cash accounting charge in the first quarter because of the health care overhaul and may cut benefits it offers to current and retired workers.The charge is the largest disclosed so far. Earlier this week, AK Steel Corp., Caterpillar Inc., Deere & Co. and Valero Energy announced similar accounting charges, saying the health care law that President Barack Obama signed Tuesday will raise their expenses. On Friday, 3M Co. said it will also take a charge of $85 million to $90 million.
All five are smaller than AT&T, and their combined charges are less than half of the $1 billion that AT&T is planning. The $1 billion is a third of AT&T’s most recent quarterly profit. In the fourth quarter of 2009, the company earned $3 billion on revenue of $30.9 billion.
AT&T said Friday that the charge reflects changes to how Medicare subsidies are taxed. Companies say the health care overhaul will require them to start paying taxes next year on a subsidy they receive for retiree drug coverage.
Read the whole story at Yahoo News
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The very next sentence reads:
“…White House spokesman Robert Gibbs said Thursday that the tax law closed a loophole….”
look up on the loophole for large businesses that allows them to double dip on tax deductions using the Part D subsidy
http://seekingalpha.com/article/195922-tax-loopholes-wealth-destruction-and-healthcare-reform