Thursday, April 08, 2010

Healthcare Tax Credit

We've been treated a shocking level of incompetence and ignorance, as a ranking Member of Congress bloviated about the tax -related writedowns that companies just took. Companies offering health care to retirees and others that qualified for a tax credit are required to adjust the carrying value of tax assets and liabilities when the law changes. Congressman Henry Waxman (D. CA), showed his ignorance of the SEC rules and ineptness at finding out how the process works.
If you are Waxman, wouldn't it be easy to wander over to the room where the committee that budgets the SEC meets, and do a little checking? Presumably not, one being consumed with the task of summoning those miscreant corporate officers in for a major public humiliation. Or,couldn't you have a staffer call the SEC? I mean, it is a government agency after all.
If you've ever read an 8K (which is the document these companies are legally required to file within days of such an event) or a 10Q or 10K, you will know that, betwen the lawyers and the CPA's, SEC filings are the most edited, bland, inoffensive, boring manuscripts to be regularly published.
In an economy that badly needs job creation, this is not an encouraging sign.

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