He knew it was coming, and was fortunately able to make other arrangements: Father John has left the Texas Health and Human Services Commission (which is currently cutting 2900 jobs) to go work for the Office of the Attorney General. I join in his skepticism that the new privatized system will be any cheaper or more efficient than what it is replacing, but for the sake of the people who will be most directly affected, I hope we're both wrong. Good luck with the new gig, Father John, and I hope you'll still have some insider dirt to pass along.
Oh, and by the way: Accenture, the outsourcer handling this contract for the state of Texas, got some bad legislative news recently.
US lawmakers rejected a lobbying effort by Accenture Ltd., the world’s second-largest consulting firm, to ensure that it obtained an exemption from tax penalties on companies that incorporate in havens such as Bermuda. A legislative package of so-called technical tax corrections introduced by the leaders of the House Ways and Means and Senate Finance committees and endorsed by the Treasury Department omits the exemption Bermuda-based Accenture had sought.
“It’s just not in there,” Christin Baker, the spokeswoman for the Ways and Means Committee said when asked why it was omitted.
House Democrats had objected to the change to benefit Accenture.
A provision in last year’s $145 billion corporate tax bill designated companies that move to Bermuda and other tax havens as US-based for tax purposes, denying them tax breaks. The law exempts companies that completed a move prior to March 4, 2003.
The omission of the change Accenture sought may be a setback for the company, which said in public filings it is concerned the Internal Revenue Service may not recognise its overseas incorporation in the same way the tax agency does for Tyco International Ltd. and Ingersoll-Rand Ltd., which also are based in Bermuda. Accenture spokeswoman Roxanne Taylor didn’t immediately respond to an e-mail seeking comment.
In regulatory filings, Accenture said it didn’t believe it was subject to the provision maintaining US corporate taxes on companies that move to tax havens.
“However, we are not able to predict with certainty whether the US Internal Revenue Service will challenge our interpretation of the legislation,” the company said.
“Nor are we able to predict with certainty the impact of regulations or other interpretations that might be issued related to this legislation. It is possible that certain interpretations could materially increase our tax burden.”