McArdle's Thoughts On Waxman's Folly...

Here's a generally good article by Megan McArdle on the coming Waxman/Stupak hearings, although the title is a tad toot apocalyptic for my taste. What we're going to actually see is the usual D.C. Kabuki Theater...

Much sound, much fury, signifying nothing.

What's going to be of far more interest is the sort of reactions we will soon be seeing out of the 6.3 million citizens presently receiving the Medicare Plan D Retiree Drug Subsidy via companies such as AT&T, Caterpillar, Deere & Co., 3M, Honeywell International, Valero Energy, Verizon, AK Steel and Illinois Tool Works. If a majority of the 6.3 million decide to get pissed off at Obamacare for putting their RDS benefit in jeopardy, I doubt clowns like Henry Waxman and Bart Stupak will be able to deflect much of their anger by calling Randall Stephenson names in a committee hearing.

All this begs the question: Why didn't they just cut the subsidy by 35% instead of taxing it? If they'd done that, there would have been no GAAP issues, no Form 8-Ks, no press releases, no nothing.

Which begs yet another question: Does anyone in the Obama Administration ever pause to think things through?

Comments

[Joe Redfield]

No.

And while we're on the subject, shouldn't the NY Times have to file one of those 8-K things every time they publish a new column by Frank Rich?

[badanov]

I love it when you talk accounting to me, Dennis...

[Randy Rager]

If they did that, they wouldn't be Democrats. Or Leftists, for that matter.

[JeffS]

Why didn't they just cut the subsidy by 35% instead of taxing it?

They can't help themselves, Dennis. Taxation is the natural reaction of lefties when they think about capitalistic corporations. Cat, catnip, etc.

[RIP Ford]

Does anyone in the Obama Administration ever pause to think things through?

Of course not. With most career politicians, and Obama in particular, it's never about the results but the appearance of doing something. Anything. Thinking things through is for the little people.

Honestly, can anyone one point to something Obama has done after college that produced a tangible result?

[Rick Ballard]

If we had decent DNA tests on 'em then Malia and Sasha might count. I just love the name "Malia" - it's perfect for something produced by an Obama (according to the Latin root).

[just passin by]

Well, RIP, he IS currently engaged in destroying the country. That should account for some tangible results.

[Drive-by commenter]

All this begs the question: Why didn't they just cut the subsidy by 35% instead of taxing it?

It might raise the question. It might suggest the question. It most definitely does not beg the question. You are incorrigible.

(low blow: I bet Matt Yglesias knows how to use the phrase correctly.)

[Eric Blair]

Grammar Nazi.

[Kleinigkeitskrämer]

O, tis a precious apothegmaticall Pedant, who will finde matter inough to dilate a whole daye of the first inuention of Fy, fa, fum.

[Tim]

Wouldn't their expenses have still gone up if the subsidy was cut? If so, is that also a material change that has to reported? Just asking, as I'm not an accountant.

[Dennis the Peasant]

Tim-

Their expenses would have gone up in 2013, which is when the RDS is to be taxed as income. However, that would not be required to be reported prospectively by GAAP. In other words, they chose the ONE way available to them to have the expense reported immediately.

Drive-By:

Don't read what I wrote, read what I meant. Geez.

[richard mcenroe]

Boeing just took $150 million charge off...

[Tim]

Thanks, Mr The Peasant. Nice to know that when it comes to fucking up, they do it in the most efficient manner. So we all got that going for us.