OBAMACARE: THE COLLAPSE OF ENRON’S ACCOUNTING REFORM
ObamaCare was passed by breaking promises and distorting costs.
The corporations such as AT&T, Caterpillar, Deere, Verizon…, all have been invited to share time with Waxman and the House Energy and Commerce Committee.
The sudden collapse of Enron, amongst disclosures that it’s public accounting statements had been cooked opened the door to many accounting scandals soon to be dealt with by Congress. Reform in corporate accounting was both bipartisan and extensive. And along came ObamaCare.
Previous reform was turned on it’s head. A major part of ObamaCare includes increased taxes on companies who instead of dumping their retirees into Medicare, offered them prescription benefits. Again, control becomes the overriding issue. CNBC: “Under the health care overhaul large ranks of retirees can no longer deduct from their taxes the subsidies paid by the federal government for retiree drug benefits.” The Enron accounting scandal produced ‘accrual accounting’. The new process was an open procedure which eliminated the ability to cook the books by hiding information from the public. Future health care benefits were required to be reported openly on the balance sheets as liabilities. Liabilities are not taxable and as such are deductions. The problem in this situation is the change in the law mandated by ObamaCare, no more tax breaks for health care. Now companies cannot afford good years.
Deductions must be reported along with assets in the quarter they are assigned. In this instance, the deductions have now been reversed making them liabilities, thus the 1st quarter losses being reported to shareholders.
Obviously a huge unforeseen mistake by Obama, but not the first and certainly not the last. Too many times these bills have produced more government control, increased unemployment, higher costs, and bankruptcies to wonder if it wasn’t another step in the master plan. In order to compensate, the Obama terrorists are forcing corporate America in front of them to squeeze our publicly traded companies to open private information and expose it to people who have no other interest than destroying them. Bring it on.
Allow us to see even more of what this is about. Take the stench down yet another level. When the numbers promised by Obama et al do not pan out, we demand the same opportunity to open their books.