Tim Burns, TechRx co-founder and vice president of product innovation, said the transaction is good news for the company and its investors. He said there may be a few layoffs in Pittsburgh because of consolidation of like business units, but he doesn't expect a major staff reduction.
"NDC acquired the business because they like what we're doing, not to completely disrupt it," Mr. Burns said.
According to 2003 filings with the Securities and Exchange Commission -- first researched by the DCCC -- by NDC Health, the company that bought TechRx, the merger resulted in the elimination of 58 management jobs companywide. It's unclear how many of these jobs were in Western Pennsylvania, as the company had operations in Atlanta; Dallas; Birmingham, Ala.; Rockville, Md.; and Vancouver as well, Burns campaign spokesman Kent Gates said. But Gates, though he didn't have specific figures, said the operations in Moon near the Pittsburgh International Airport actually grew after the merger.(Emphasis added.)
Burns was an executive at NDCHealth Corp. from January to June 2003 after the company bought his start-up business, TechRx.
NDCHealth coordinates the flow of information between pharmacies, insurance companies, doctors and hospitals, according to a company release. It does business internationally and during the time Burns worked there the profit it made overseas was classifies as a "deferred tax liability."
In 2003, the company took in close to $407 million in revenue in the United States and $21 million abroad, according to its Securities and Exchange Commission filing. It paid a total of $1.55 million in taxes -- 40 percent of which was at the foreign tax rate of 1.2 percent as opposed to the 35 percent federal statutory rate.
Democrats argue that this means Burns was condoning the use of a tax "loophole."
The substance of these claims is further refuted by this letter from a former employee of TechRx, the company that Burns founded:
I don’t know where Mark Critz is getting his information about Tim Burns, but people need to know that a lot of it is just plain WRONG.
I worked for the company that Tim Burns started, and I never saw any form of outsourcing to foreign companies. In fact, when I started at TechRx, there were fewer than 30 employees; by the time I left in 2002, the company had grown to more than 400 employees. Tim sold the company to the larger corporation that helped fund that growth. And that “growth” meant jobs for Pittsburghers!
Eight years have passed since I left Tim’s company and I am still working on and supporting “his” software at another company (a mail service pharmacy that is a former client of Tim’s pharmacy software company). In fact, Tim’s statement that he created 400 jobs is actually an understatement because many more jobs resulted, both from the sale of the company and the sale of the source code to former clients.
Tim is a person of high integrity and knows what it takes to build businesses and create jobs. He is the kind of intelligent, non-career politician that we need in Washington to begin to change the irresponsible overspending and redistribution of wealth mentality that exists there now. If I lived in his district, I would, without a doubt, vote for him.
Dr. Diana L. Repack (and Dr. William F. Repack)
Former TechRx employee (1998-2002)
Moon Township, PA
House conservatives tend to understand that Social Security provides a critical foundation of income for retired and disabled workers. Social Security is safe for today's seniors. However, the government does not save our Social Security taxes for future retirees. Congress borrows this extra money and uses it to make up for deficits elsewhere in the budget. Thus the Social Security trust fund contains nothing but IOUs the government has written to itself. For this reason, House conservatives should be encouraged to act now to seriously investigate long-term, structural reforms to Social Security.
Improving our nation's health care system is a priority for all American families. House Conservatives support competitive reforms designed to lower costs and ensure quality access to care. Policies that will increase competition and individual choice in the healthcare marketplace are essential in achieving greater efficiency and eliminating the rising costs of healthcare. It should not be the goal of government to subsidize health care but to seek solutions that will reduce the costs of procedures, consultations and medications..
Medicare is a vital program for America's elderly and disabled citizens. We believe in working hard to secure the program's future while strengthening the program to better meet the changing needs of today. House Conservatives are committed to securing adequate and affordable health care for seniors while stabilizing the burden placed on the American taxpayer
Toomey is considered the front-runner in the race for the Republican nomination, with the May 18 winner to face either Democrat Rep. Joe Sestak or Sen. Arlen Specter in the fall.
An April Quinnipiac University poll incorrectly said that Toomey was running unopposed.
Luksik said that many Republicans were "very insulted" by the oversight.
"It's like the moguls have decided for them," she said.
Despite the omission, Luksik said she would continue to run her campaign in her own style.
"It's quiet in that it's a people's campaign," she said. "I've always campaigned that way. No one sees me coming until Election Day."
Mr. Bucchianeri sees his lack of a government career as a plus and believes he can bring new energy and fresh perspective to the office. While both candidates were well-informed, Mr. Bucchianeri was direct and straightforward in his answers, while Mr. Critz, on controversial topics, was hedged and cautious. Ryan Bucchianeri may be the underdog in this matchup, but he has earned the Post-Gazette endorsement.
Mr. Burns has the backing of party officials in the primary and is advertising heavily to make his candidacy known. Mr. Russell, at last report, raised more money but is waging a less visible campaign. That suggests Tim Burns would make a stronger candidate for the party in the fall, and on that basis he has earned the Post-Gazette endorsement.
A political action committee connected to a controversial GOP consulting firm is running ads on behalf of one of the firm's major clients, raising questions about coordination between groups that are required by law to operate independently of each other.
The PAC, Freedom's Defense Fund, is running an ad on behalf of Iraq war veteran William Russell (R), the '08 GOP nominee against Rep. John Murtha (D). Though he raised and spent nearly $3.5M, Russell was not the party's choice to run for Murtha's seat when the long-time Congressman passed away earlier this year.
Instead, PA GOPers picked businessman Tim Burns (R) to carry their standard in the May 18 special election. But that wasn't the end of Russell's hopes; May 18 is also the date of the regularly scheduled primary, in which Russell is competing against Burns.
The competitive primary could put Burns in an awkward position of having to defend his right flank while simultaneously appealing to the Dem voters in the overwhelmingly Dem district as he faces a special election and a primary on the same day. Russell, after all, has been on a ballot before; he won 42% of the vote against Murtha in '08.
Enter Freedom's Defense Fund, which late last week dropped $20K into an ad buy on Russell's behalf. The ad calls Russell a "true conservative," a "tireless campaigner" and a "proven fundraiser."
Freedom's Defense Fund, a PAC founded just before the '04 elections, lists as its address in the ad the same downtown DC address as Base Connect, a GOP direct-mail firm that has helped Russell raise millions through direct mail solicitations.
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