Straight From The Dept. of Reaping What You Sow Dept....

(No Matthew Yglesias-type persons were harmed in the production of this post.)

You know, I've been saying for a year that Obamacare shouldn't be passed because it was genuinely shitty legislation. And for a year I've had pointy-headed, furrow-browed, knuckle-dragging Democrats, liberals and progressives of the sloping forehead persuasion telling me that my criticisms were motivated by a various combinations of rank partisanship, lack of moral fiber, hatred of mankind and/or obvious stupidity.

Well, now Obamacare is the law of the land and the shittiness has commenced, much to the dismay of morons like Henry Waxman:

Rep. Henry Waxman, chairman of the House Committee on Energy and Commerce, has summoned some of the nation's top executives to Capitol Hill to defend their assessment that the new national health care reform law will cost their companies hundreds of millions of dollars in health insurance expenses.  Waxman is also demanding that the executives give lawmakers internal company documents related to health care finances -- a move one committee Republicans describes as "an attempt to intimidate and silence opponents of the Democrats' flawed health care reform legislation."

On Thursday and Friday, the companies -- so far, they include AT&T, Verizon, Caterpillar, Deere, Valero Energy, AK Steel and 3M -- said a tax provision in the new health care law will make it far more expensive to provide prescription drug coverage to their retired employees.  Now, both retirees and current employees of those companies are wondering whether the new law could mean reduced or canceled benefits for them in the future.

Because Henry Waxman really is a moron, he no doubt imagines that the companies named above did what they did to make a political point. But you see, that's the problem with genuinely shitty legislation: It goes beyonds beyond the realm of the purely political.

Waxman's demands came Friday in letters to several executives. "After the president signed the health care reform bill into law, your company announced that provisions in the law could adversely affect your ability to provide health insurance," Waxman wrote to Randall Stephenson, chairman and CEO of AT&T.  A few hours before Waxman sent his letter, AT&T announced it will take a $1 billion charge against earnings because of the tax provision in the new health bill. AT&T also said it will be "evaluating prospective changes" to its health care benefits for all workers.

Waxman's letter suggests he does not accept the company's decision. "The new law is designed to expand coverage and bring down costs, so your assertions are a matter of concern," Waxman wrote to Stephenson, in addition to letters to Verizon CEO Ivan Seidenberg, Caterpillar CEO James Owens, and Deere & Company CEO Samuel Allen.  The companies' decisions, Waxman wrote, "appear to conflict with independent analyses."

Waxman's demands for documents are far-reaching. "To assist the Committee with its preparation for the hearing," he wrote to Stephenson, "we request that you provide the following documents from January 1, 2009, through the present:

(1) any analyses related to the projected impact of health care reform on AT&T; and (2) any documents, including e-mail messages, sent to or prepared or reviewed by senior company officials related to the projected impact of health care reform on AT&T. We also request an explanation of the accounting methods used by AT&T since 2003 to estimate the financial impact on your company of the 28 percent subsidy for retiree drug coverage and its deductibility or nondeductibility, including the accounting methods used in preparing the cost impact statement released by AT&T this week.

Waxman's request could prove particularly troubling for the companies.  The executives will undoubtedly view such documents as confidential, but if they fail to give Waxman everything he wants, they run the risk of subpoenas and threats from the chairman.  And all as punishment for making a business decision in light of a new tax situation.

In actuality, and despite Byron York's breathless assertions to the contrary, Waxman's request will probably not trouble any of the companies involved. The documentation they will be required to provide is the same documentation they would have to provide to the S.E.C. in response to a routine request. You see, these companies did not just decide to release press statements disclosing the horrors of Obamacare to a shocked and dismayed citizenry. In fact, they didn't release press statements at all. What they did was what was required of them by law:

They filed an 8-K with the S.E.C.

For those of you who are unfamiliar with financial regulation, the law requires all publicly held companies to file a Form 8-K with the S.E.C. when said company becomes aware of either a (1) unscheduled material event, or (2) a company change. As a matter of fact, that's what a Form 8-K is called, a "Report of unscheduled material events or corporate changes". And according to the law, when a company becomes aware of an unscheduled event that will probably have a material impact on the earnings or operations, it must file a Form 8-K with the S.E.C. or risk sanction.

That's exactly what AT&T, Caterpillar, Deere & Co., Verizon, AK Steel and others did: They complied with the law. Financial regulatory law. You know, the sort financial regulatory law Democrats are saying they are real keen to strengthen. Anybody think the irony of Henry Waxman's stooge Bart Stupak bitching out Randall Stephenson for doing what financial regulatory law requires is going to be lost on the Congressional Republicans in the room?

Beyond that, you can bet the staffers working for Democratic Representatives sitting on the Energy and Commerce committee, and especially those involved with Energy and Commerce's investigation subcommittee are, at this very moment, completely horrified. They're quite aware, even if Waxman isn't, that because each of the companies named above have filed a Form 8-K and booked losses related to the event described in the Form 8-K, those companies have documentation that has been labored over by tax and accounting professionals for months; documentation that was then reviewed thoroughly by the company's independent auditors. Everyone that was involved is a damn site better than any of the staffers Waxman and Congressional Democrats will have available for investigation.

What Waxman is now laying himself open to is the charge that he is attempting to force these companies to manipulate their financial data to suit the political aims of President Obama and Congressional Democrats. Since there is absolutely no hope of investigative committee staffers finding evidence that AT&T's (or others') calculations are materially incorrect, Waxman simply comes across attempting to force the managements of publicly held companies to circumvent the law.

This is the part the Democratic/liberal/progessive political classes and commentariat doesn't get: Once Obamacare became the law of the land, its effects are no longer solely a matter of politics. Now there are real-world effects, and many of those real-world effects will not go away when political pressure is applied. The next week will be filled with more companies filing more 8-Ks describing just how much "health care reform" is going to cost them, and by implication, their employees, and there is nothing that Henry Waxman can threaten that will make those companies stop. 

Besides, this is what Henry Waxman wanted. He wanted Obamacare, and by God, he got it. Kick back, Henry, and enjoy!

Note: Here's AT&T's Form 8-K, in all its sinister glory:

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of report (Date of earliest event reported) March 23, 2010

AT&T INC.

(Exact Name of Registrant as Specified in Charter)

Delaware	1-8610	43-1301883
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

208 S. Akard St., Dallas, Texas	75202
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (210) 821-4105

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events

On March 23, 2010, the President signed into law comprehensive health care reform legislation under the Patient Protection and Affordable Care Act (HR 3590).  Included among the major provisions of the law is a change in the tax treatment of the Medicare Part D subsidy.  AT&T Inc. ("AT&T") intends to take a non-cash charge of approximately $1 billion in the first quarter of 2010 to reflect the impact of this change.  As a result of this legislation, including the additional tax burden, AT&T will be evaluating prospective changes to the active and retiree health care benefits offered by the company.

CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS

Information set forth in this report contains financial estimates and other forward-looking statements that are subject to risks and uncertainties and actual results may differ materially.  A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission.  AT&T disclaims any obligation to update or revise statements contained in this report based on new information or otherwise.

 

Comments

[Aridog]

Now we know precisely why Mz Pelosi kicked Dingell to the curb in favor of home boy Waxman, the Beverly Hills "ghetto" rodent.

[just passin by]

"The new law is designed to expand coverage and bring down costs, so your assertions are a matter of concern," Waxman wrote to Randall Stephenson.

Translated into Dumbass Dhimmicrat -
"We legislated magical rainbow unicorns, so we demand that you to give birth to them"

[Dennis the Peasant]

What's bizarre is that Waxman knows full well that the Chamber and various business groups lobbied hard to keep the Medicare D subsidy in the final bill. None of this should come as a shock to anyone.

[Randy Rager]

Sweet Fancy Moses. Are these people really this fucking stupid?

[JeffS]

"...telling me that my criticisms were motivated by a various combinations of rank partisanship, lack of moral fiber, hatred of mankind and/or obvious stupidity."

Weren't you called a racist as well? You really haven't arrived as a conservative of any persuasion until you are declared a racist.

Beyond that, I'm just a lowly peon slaving away here in the United Socialist States of America, and I immediately saw those letters as an act of intimidation by Henry "Bat Boy" Waxman. And I didn't even look at those statements as being required by the SEC; I was thinking of the 1st Amendment.

What business is it of any Congresscritter what the corporations say, as long it outright slander and libel aren't involved? At most, with any reasonable member of Congress, this sort of altercation should mean exchanging broadsides of stern letters and press releases. Invoking the power of Congress as a threat of intimidation over what should be a minor disagreement is way way way overkill.

Oh, wait, never mind. We are speaking of lefties, after all, who are anything but reasonable, and will harbor no criticism, since they are idiots studying to be morons.....and failing the test, every time.

[kansas]

"The new law is designed to expand coverage and bring down costs"
How the fuck can you what a bill is designed to do when you don't read it?

[Don Brouhaha]

The correct narrative is that the corporations are bent on irresponsibly maintaining their profits while denying the folks their rights, under the new HCR laws.
It is irrelevant that these corporations are trying to obey tax laws, those pesky financial regulations. They are, in fact, at odds with that Higher Law, the implication of which is that they should all go broke trying to deliver the same level of coverage that they delivered last year.
That is the narrative and the denunciation planned for the show trials, er, hearings to be staged, er, chaired by Waxman.

Don't we all live in interesting times??

[Jim Ryan]

Just a thought:

...consider purchasing shares in any public company which does not report a potential negative impact on earnings due to HCR within the next two weeks. There is some fertile ground to be plowed and Waxman is going to provide sworn testimony from some big guns that could prove very profitable in going after the Maladminsitration's big business bootlickers.

The punative and compensatory damages awarded to stockholders could really add up.

[Torquemada]

Nothing like a good auto da fe, that's what I always said.

[J West]

1. Props to Torquemada. (Never dreamed I'd write anything like that.)
2. Can't call Rep. Waxman a moron. He's a negro -so that would be racist. His skin color gives merit to his positions.
3. The administration's front people are most carefully chosen.
4. The only white male front men out there are Gibbs and the VP. Need I say more.
V/R JWest

[impotenta]

hey... your blog has moments when it stops responding :(

[Dennis the Peasant]

JWest-

Don't go there. I don't want Russell King thinking badly of us.

impotenta-

You can thank Typepad for that. It's been especially wonky lately... as opposed to its usual level of wonkiness.

[Third Coast]

To make matters worse for Waxman and his staffers, those evil corporations told Congress this is what would happen:
Industry groups say they lobbied hard against the change in the tax rules before it was added to the health care law over the winter.
"It was in all of our letters and communications that went up to the Hill, and the companies were heavily involved in that," said Dena Battle, a tax specialist with the National Association of Manufacturers.

[BettySueLA]

I actually read the bill and can't believe that I live in the same country as a bunch of loondouche morons who would support it. Do they think that somehow they are EXEMPT from the "shittiness" of this horrible, destructive, PIECE OF CRAP legislation? How many times did the WSJ, Forbes, etc. have to say that it is "the worst piece of legislation in America's history" before their little pea brains got it? I am shocked and appalled. But, then again, two years ago I said to all of my friend he would destroy America. And he is. Sad times, Comrades.

[Mark Rickard]

If these CEOs were really of the testicular fortitude type, they'd tell Waxman in no uncertain terms exactly why they did this. They won't.

[richard mcenroe]

It should come as no surprise to anyway that Henry the Snout is ignorant of the business regulations he is supposed to be overseeing. He is very possibly one of the stupidest upright bipeds in this short-bus Congress.

A story from Burt Prelutsky, screenwriter, columnist and reformed liberal: back when the snout first entered Congress, it was a tradition among lobbyists to hold poker games for the freshman Congressmen and deliberately lose so they could slip the froshes a few bucks off the books to establish a relationship.

They could not cheat themselves badly enough to let Waxman win. He was literally so inept that they could not even blatantly throw the games to him. Eventually they stopped inviting him.

And now a man who cannot be taught not to draw to an inside straight is in charge of writing cap and trade legislation and supervising American business practices. What could possibly go wrong?

[richard mcenroe]

J west -- Henry Waxman is black? WTF?

[Person of Choler]

I'm on a committee in my company that reviews 8K, 10K, 10Q etc. filings. Our green eyeshade brigade sweats over every digit, a document is drafted, then the meetings/teleconferences start. After several such meetings a final powwow is held where the CEO and the CFO are present. They've read the entire thing before the meeting and question even punctuation to ensure that they understand and agree with what's written. It isn't that they're grammar Nazis, they just don't want to end up playing Retrieve the Soap with Bernie Madoff.

I'm sure the guys summoned by Waxman go through the same thing and are as thoroughly prepared. It will be a treat to watch the questions and answers. As our Peasant points out, the staffers must be in a dreadful sweat to figure out to program His Waxness to sound less like an idiot than usual.

[ThomasD]

Henry Waxman is black? WTF?

Well, those nostrils are black holes. Of a sort.

[ThomasD]

Oh, and If Waxman goes through with this it will only serve as absolute proof of his idiocy. These CEOs not only won't back down, they can't back down, it's too late to do anything else. When publicly called upon to explain these announcements they are legally bound to support them.

Any actual hearing will prove nothing more than an advertisement against Obamacare. Look for Waxman to blink (assuming he has eyelids.)

[Buck O'Fama]

The ObamaCare shit storm is just getting started. Today Aetna announced they will be increasing premiums due to ObamaCare. Open Waxhead's nostrils, the snot will be flyin' out tonight!

[Brian Dunbar]

Mr. Waxman is not a moron. He's being political to enhance his chances in the next campaign and to better the fortunes of his party.

[Dennis the Peasant]

If that was true, he'd have voted against Obamacare in the first place.

[DonnieDarko]

Go ahead anon, call Dennis a fucktard. See what happens. :-)

[aelfheld]

This is what happens when a leading light of the 'reality-based community' meets reality.

[Uncle Fester]

I swear, it's like watching "Laurel and Hardy Meet The Little Rascals" in slow motion.

It occurs to me that, when Lenin coined the term "useful idiots" it wasn't conservatives or independents he had in mind...

[dndrko]

Oops. I shouldn't have dared him.

[Dennis the Peasant]

That'll learn ya.

[Buford Gooch]

Waxman is not only handsome, he's brilliant.

[frank martin]

Just wait till October when companies start taking enrollments to next years health care plans and employees start finding out that what was offered last year will a) no longer be available or b) cost a whole lot more than last year.

Talk to any HR manager, they will tell you whats coming.

[richard mcenroe]

Buford, I'll grant you he's as brilliant as he is good looking, like mostBat Boys

[J West]

1. Discovered that Rep. Waxman is not black.
2. My bad.
3. Just another dumbass cracker I am.
4. Pulled two tours in San Diego County and never twigged to the contrary.
5. As I responded to a couple black clients yesterday, "I hate white people, too."
V/R JWest

[MarkJ]

Dear Brian,

"Mr. Waxman is not a moron. He's being political to enhance his chances in the next campaign and to better the fortunes of his party."

Frankly, come to think of it, calling Waxman a "moron" is an insult....to real morons who genuinely can't be anything other than who they are.

We all know that's not the case with Li'l Henry, don't we?