Category Archives: Business

Update II: Fascism Rising (Henry ‘Nostrilitus’ Waxman)

Bush, Business, Democrats, Economy, Fascism, Government, Republicans

A couple of day ago a number of major companies came out with the preliminary assessment of the costs to each of the “Manna From Mount Olympus” bill, namely Obama’s healthscare legislation. The fascist state that America has become responds sternly to economic forecasts that go against the government’s grain. You may be called on to justify yourself if your assessment of your books diverges from the government’s.

“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,” reports the Washington Examiner.

Waxman wants “the executives to explain themselves at an April 21 hearing before the Energy and Commerce Committee’s investigative subcommittee.”

As Byron York points out, “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.”

AN enterprise’s freedom of speech, right to privacy, prerogative to disseminate information about its finances and accounting—this government is asserting ITS right to infringe all these and more.

The Republicans had similar witch hunts when in power (which is why I’m perplexed that some conservative commentator are convinced, and keep repeating, that only now, under Obama, have they lost these freedoms). The “Sarbanes-Oxley Act,” signed into law by President Bush, was government’s response to The People hoisting their pitchforks against business. Also known as the Corporate Corruption Bill, it singled out a much-maligned minority for the kind of persecution that, if visited on women, blacks or Jews, would be considered actionable, hate-filled discrimination. Hearings were all the rage at the time too.

Update I (March 30): Related: “Dems fear honest Obamacare accounting”:

Democrats, in their zeal to raise revenues and improve Obamacare’s claimed effect on the federal deficit outlook, took away a tax break these companies needed in order to supply prescription drugs to their retirees. The tax subsidy, itself a government accounting ruse crafted in 2003 by the Republican Bush administration to dissuade corporations from dumping their retiree drug benefit programs on the then-new Medicare Part D, becomes taxable under Obamacare. Corporations are now being reminded of the harsh truth: What Big Government giveth, Big Government taketh away, too.

Update II (March 31): Henry “Nostrilitus” Waxman (thanks for the laugh, Greg):

The Cost Of Manna From Mount Olympus

Business, Economy, Healthcare, Labor, Regulation

Nancy can be seen in media photo opportunities smooching a gold-embossed copy of the bankrupting healthcare bill. You can’t expect the little woman to grasp that the regulation and confiscation of private property, what’s left of it, has costs.

Caterpillar, “the world’s largest maker of construction and earth-moving equipment, said Wednesday that the new healthcare legislation in the U.S. will cause the company to take a $100 million tax charge in the current quarter,” reported Fox News.

Caterpillar said the additional expense and higher taxes to come could damage the recovery efforts that began after the company lost 75% of its profit in 2009.

According to the Charleston Gazette, “In the first two days after the law was signed, three major companies – Deere & Co., Caterpillar Inc. and Valero Energy – said they expect to take a total hit of $265 million to account for smaller tax deductions in the future.”

“With more than 3,500 companies now getting the tax break as an incentive to keep providing coverage, others are almost certain to announce similar cost increases in the weeks ahead as they sort out the impact of the change.

Figuring out what it will mean for retirees will take longer, but analysts said as many as 2 million could lose the prescription drug coverage provided by their former employers, leaving them to enroll in Medicare’s program.”

The WSJ reports that,

“AT&T Inc. plans to take a noncash $1 billion charge in the first quarter in anticipating the impact of changes brought by the nation’s health-care overhaul.”

The Dallas-based telecommunications giant is the latest—and largest—company to take a charge to account for the increased costs under the new health-care plan. Specifically, the legislation prevents corporations from deducting tax-free subsidies they receive from the government for providing retirees with prescription-drug benefits.

The company will evaluate prospective changes to its active and retiree health-care benefits, according to a filing with Securities and Exchange Commission on Friday.

The size of AT&T’s charge is notable. The company employs more union workers than all of the U.S. auto makers combined, and has to support a sizeable retiree base

I FULLY EXPECT to hear shortly from our insurance company as soon as it has figured out how to nudge us over onto ObamaCare.

Toyota Shakedown Continues

Business, Government, Republicans, Technology, The State

Torquemada’s onslaught against Toyota has signaled to others in the business of shakedown to try their luck. That was what James Sikes, in his unstoppable Prius, was up to, as the malfunctioning media broadcast a blow-by-blow account of his Prius gone wild, while network bimbos looked on, shaking empty heads and tsk-tsking loudly.

Sikes was trying out the trick Rhonda Smith of Sevierville, Tenn., pioneered, and with which she won the Congressional inquisitors to her side. Smith’s run-away “Herbie” was a Lexus 350 ES sedan. You don’t want to get into one of those death traps.

Toyota Motor Corp. dismissed the story of a man [Sikes] who claimed his Prius sped out of control on the California freeway, saying Monday that its own tests found the car’s gas pedal and backup safety system were working just fine.

The automaker stopped short of saying James Sikes had staged a hoax last week but said his account did not square with a series of tests it conducted on the gas-electric hybrid.

The Regulator in the person of U.S. Rep. Darrell Issa (R-Calif) was looking over Toyota’s shoulder during the testing. We’re safe! He follows the proud tradition of the Floridian Republican, John Mica and Jason Chaffetz.

During the House Committee on Oversight and Government Reform inquisition, last month, “in florid language,” Mica blasted a Toyota official: “‘I’m embarrassed for you, sir,’ Mica shrieked, clutching his smoldering toupee. Not much better was Chaffetz. This Republican admonished Mr. Inaba for an internal Toyota brief that called ‘the American government safety agency under the Obama administration less ‘industry friendly.'”

This revelatory reality—at least to Republicans—had pushed the Toyota team into a dalliance with the regulators. Any serious student of economics knows that regulation forces an entrepreneur to substitute viable, voluntary trades and transactions with politicized decision making. But what does Chaffetz [and his fellow Republicans] know?

Updated: Toyoda Vs. Torquemada

Business, Fascism, Political Economy, Politics, Regulation, Republicans, Technology

The excerpt is from “Toyoda Vs. Torquemada,” my latest WND.COM column:

“Mr. Akio Toyoda, the president of Toyota, could have achieved the brevity much-admired in his culture (and mine) had he responded thus to the invitation to appear before the congressional committee investigating the recall of eight million of his vehicles:

House Committee on Oversight and Government Reform’s invitation to Mr. Toyoda: ‘Dear Mr. Toyoda, we will be sitting between 11:00 AM and 5:00PM on February the 24th.’

Toyoda’s putative Reply: ‘Akio Toyoda likewise.’

To complete the one-two punch, Mr. Toyoda’s second in command, Yoshimi Inaba, president of Toyota Motors North America, ought to have sent each of his would-be Democrat and Republican inquisitors a short note, in large typeface, preferably with pop-up pictures.

In it, he ought to have reminded them that his company employs over 170,000 of their countrymen; has invested billions in capitalizing its factories, and is philanthropic at a time when Americans are desperate for charity.

… Mention the unseemly specter of a government—the owner de jure of General Motors and Chrysler—strong-arming the competition, his own Free-Market Motors.

A well-worded barb about the embarrassing, timely FBI raid on a Toyota auto parts operation in Detroit would have been apropos as well. Tell them, Mr. Toyoda, that you are doing business in a country where the competition is backed by the power of the police.

In closing, Toyoda might have reminded the overweening House Committee on Oversight and Government Reform that his bosses are Toyota’s customers, and that it is to them alone that he’d be answering.

Back on terra firma, … ”

Read the complete column, “Toyoda Vs. Torquemada.”

And do read my libertarian manifesto, Broad Sides: One Woman’s Clash With A Corrupt Society.

The Second Edition features bonus material. Get your copy (or copies) now!

Update (Feb. 27): By the by, this household has never contemplated buying an American car. Gutless gas guzzlers, mostly. If the US made cars comparable in performance and economy to those of Toyota or VW—then sure. American cars are really ugly too, except for the Corvette and mustang. The first is a good car, except that it has some old-engine style oddity that requires yearly tweaking, or so I am told. The Mustang is completely gutless compared to this pocket rocket.