Many of you I am sure have seen that a number of large companies are taking charges in the current quarter for reforms that came out of the health care bill. 300 large corporations have urged the President to repeal a provision that allows them to receive a subsidy on drug coverage and then take a tax deduction for the expense. The companies have said this would deal a significant blow to corporate profits and discourage companies from hiring more workers.
I don’t understand the large companies on this one as it seems to me that if I receive a subsidy I shouldn’t be allowed to then take a deduction. Seems like double dipping but maybe some of you can explain this to me.
Yesterday I received an inquiry from a reporter indicating that businesses are going to be allowed to reduce their prepayment on payroll taxes due to the economy. I have not heard of this. Are any of you familiar with this provision and if so will it help you?
Small Business California
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