Friday, March 26, 2010

Cat, Deere, and $4.15 BILLION More Coming

So Cat takes a $100MM charge, Deere takes another $125MM...and it ain't over.

“Although the changes don't go into effect until 2013, companies say they have to take the charge to earnings now, to reflect the loss of the future tax deductions. In all, the S&P 500 companies will take a combined hit of $4.5 billion to first-quarter earnings, estimates David Zion, an analyst with Credit Suisse.” --WSJ, quoted by Beltway

That's $4.5BN in lost wage/salary increases, or machinery/equipment purchases, or R&D expenditures, or health coverage.

That's ObamaCare!

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