Republican critics are continuing to pummel health care reform. Their newest charge is that the elimination of one generous tax deduction for retiree benefits would take such a bite out of corporate profits that companies may have to cut back on hiring, drop that retiree benefit, and shift added costs onto the taxpayer.

What is really going on? It is true that, starting in 2013, the new law eliminates a corporate tax advantage on retiree drug benefits that amounts to double-dipping.

It is also true that accounting rules require that the present value of the entire additional tax that companies will have to pay over the next several decades be put on the books now. That led AT&T to declare a charge of about $1 billion in the first quarter of 2010 and Verizon to declare $970 million.

Those look like staggering amounts until one understands that they don’t require any immediate cash payments and that the added taxes will be paid out slowly  over perhaps 30, 40 or more years, depending on a company’s retiree plan.