bill will cut them - AT&T reporting that it's going to cost them billions, OMG
But when you did into the details, the story is a little different (shocking)
http://www.marketwatch.com/story/att-sees-1-billion-write-down-tied-to-health-law-2010-03-26?reflink=MW_news_stmpSeveral million retirees are estimated to receive drug benefits from a few thousand companies. If those retirees were shifted to the federal Medicare program, the government would to pick up the expense. Whether savings from elimination of the subsidy would offset those higher Medicare costs is unclear.
Under the old law, companies received a federal subsidy worth up $1,330 per retiree if they provided former workers with drug-care benefits. At the same time, however, companies could deduct the value of the subsidy from their taxable income. See blog on whether the new health care law already is hurting business
White House spokesman Robert Gibbs on Thursday said the government merely eliminated a tax loophole that effectively allowed a company to benefit twice from one law.
A new tax? Nope, closing of a loophole that allowed them to get the money from the government AND write it off their taxable income at the same time.
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