Henry Waxman: Original Gangsta
Last night after the news cycle had ended Politburo Congressional members Henry Waxman, Secretariat Chairman of the Committee on Energy and Commerce and his trusty sidekick Bart “Brother, can you spare 30 pieces of silver?” Stupak issued letters to the CEOs of Caterpillar, John Deere, AT&T, and Verizon requesting their presence at a Grand Inquisition hearing to be held on April 21st. See here, here, here, and here. Early reports of strong approval being voiced by the administration of Tony Soprano President Obama could not be immediately confirmed.
What exactly do the CEOs of the above four companies have in common? They all followed the letter of the law and are restating their earnings immediately to account for massive writedowns as a result of taxes being raised on their provision of prescription drug benefits to their retirees. AT&T took a 1 billion dollar hit, Deere took 150 million, and Caterpillar took 100 million. When you face higher taxes that materially impact present value of future obligations you must restate. It’s the law.
This, of course, didn’t sit well with the Thugocracy Democrats whose HCR strategy depends upon delaying disastrous real-world consequences in the hope that people don’t connect their gross incompetence with actual economic malaise. Here’s an excerpt from the “invitations:”
“After the President signed the health care reform bill into law, your company announced that the new law would adversely affect its financial outlook for Fiscal Year 2010, stating, ‘As a result of the legislation, the company’s expenses are expected to be about $150 million higher on an after-tax basis.’ The new law is designed to expand coverage and bring down costs, so your assertions are a matter of concern. They also appear to conflict with independent analyses.”
In other words, please suspend disbelief and ignore what the pesky FASB says. Oh, and don’t worry about the SEC, either. Had the no-talent assclown Waxman ever done an honest days labor in the private sector, he might have known that it’s actually illegal for private corporations to cook their books the way the Feds cook theirs. He then continues:
“To assist the Committee with its preparation for the hearing, 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 Deere & Company; 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 Deere & Company. We also request an explanation of the accounting methods used by Deere & Company since 2003 to estimate the financial impact on your company of the 28% subsidy for retiree drug coverage and its deductibility or nondeductibility, including the accounting methods used in preparing the cost impact released by Deere & Company this week.”
Translation: since we can ill afford exposure of the immediate destruction of capital and wealth so soon after the passage of HCR, we invite you to “revisit” your accounting methodologies and “revise” your estimates. We’ll be at your service on April 21st to provide you with some much needed “reeducation.”
Gangsta Government, you gotta love it.