The 3500 major corporations that are facing upwards of $14 billion in charge-downs EARNED that deduction by agreeing to take on the task of providing prescription drug coverage to their retirees, thus offloading the task from Medicare.
The deduction was part and parcel of the deal struck in 2007. The government would subsidize (not pay for) the cost, but the companies could still deduct the entire cost.
Why else would businesses have taken on this responsibility. To be nice guys????
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