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I'm opening this thread not as an opportunity for people to attack Obama once again, but seeking information.
According to the story on NPR this morning, the reason that these big companies are taking charges on their books is because the new health care law terminates the tax subsidy they were getting for keeping their retirees on their drug coverage. As it was explained on the radio, the Medicare Part D program subsidized these employers to the tune of about 28% of the actual cost of providing the coverage, but allowed them to continue to write off the entire cost, not just the 72% that they were continuing to have to pay.
My question is this: The change in the law means that in the coming years these companies will not get this writeoff, so they will have to pay more in taxes (based on losing the writeoff on the 28% they're not paying).
Why is this a one-time charge, and not just a change in their income and expenditures in each of the years in which they will have to pay these taxes?
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