Boeing is the latest to cry foul over health reform
“Although this tax increase does not take effect until 2013, accounting standards require that a deferred income tax asset be written down in the period legislation changing the tax law was enacted.”
The charge is expected to reduce Boeing’s share price by 20 cents in the first quarter of 2010.
The airplane manufacturer is the latest in a growing list of companies that have announced they will pay higher taxes because of the healthcare law.
AT&T announced a $1 billion tax charge. Caterpillar and John Deere announced tax charges of $100 million and $150 million, respectively. 3M claimed health reform would increase taxes by roughly $87 million.
Credit Suisse analyst David Zion estimates that S&P 500 companies will pay $4.5 billion in increased taxes because of health reform, news organizations have reported.
House Energy and Commerce Committee Chairman Henry Waxman (D-Calif.) has asked many of these companies to testify before his committee and explain their tax increases.
The Congressional Budget Office estimated that these companies would see a roughly 3 percent reduction in health care costs because of reform. The estimate appears to pertain to premium costs, not tax liability.