Waxman Fires First Shot on Capitalism

Wow! The Democratic leadership celebrated their healthcare "win" for all of four days before reality sunk in and the real work began. The beginning of the end of the free market system known as capitalism was witnessed this past weekend. Much like the first shot fired upon Fort Sumter that signaled the start to the Civil War, Henry Waxman has made a move that is just as foreboding.

Apparently there are some changes in the healthcare reform bill that effect the tax provisions available to companies who offer their retirees prescription drug benefits. These tax provisions are eliminated now that the law has been signed and these companies had a duty (under accounting rules) to report these losses as a part of their first quarter earnings. Companies affected by these changes and who made announcements stating so include; AT&T ($1Billion loss), Deere & Co ($150 Million loss), Caterpillar ($100 million loss) and AK Steel ($31 Million in losses). CEO's of these companies (and others adversely affected by the changes to the tax laws) reported these losses truthfully and unpolitically as required by GAAP (Generally Approved Acccounting Principles) to their shareholders and the public.

Mr. Waxman, apparently still high from the fumes of the twenty pens used to sign healthcare reform into law, got his knickers in a knot when American companies began to actually review the monstrosity known as Obamacare and didn't keep quiet about what they found. Mr. Waxman has called a handful of CEO's of companies, who released news of losses under the new healthcare regime, to Washington DC to appear before an Energy and Commerce Investigative subcommittee hearing on April 21. The California Congressman doesn't stop by "inviting" them to this hearing, no the CEO's also need to be sure to bring with them emails, documents and "the accounting methods used in preparing the cost impact statement released by AT&T this week".

So American companies are being called upon the proverbial carpet for abiding by GAAP rules and some would say free speech. Congress is smacking them down and in essence saying "No no, wait, that wasn't what we told you. We told you it would save money you can't tell people that we lied! No, no we can't have that. Now, please present yourselves to receive your punishment".

I think I see the problem and can almost understand where the CEO's went wrong. You see these companies use something called GAAP, Generally Approved Accounting Principles. Don't they know that they are supposed to use DAFT, Dubious Accounting (Barney) Frank Theorem?

It is also evident that Mr. Waxman has learned lessons from a high-level Obama advisor - good old "If we can't use the power of persuasion then we'll use the persuasion of power" Andy Stern. I assume that Congressman feels that he can help the misguided CEO's to see the light.

God help us all as our freedoms evaporate into thin air.

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