That collective sigh of relief that you just heard? It was Hollywood, taking comfort in the fact that the cosmetic surgery tax is off the table in the race to pay for health care reform.
But don’t start laughing just yet, George Hamilton.
It’s been replaced with a 10% tax on tanning services.
And yes, it won’t raise as much money as the plastic surgery tax. That tax, referred to as the Botax, was expected to raise $5.8 billion in revenue. The tax on tanning? A measly $2.7 billion.
But unlike the Botax, the tax on tanning has fans. Both the American Academy of Dermatology Association (AADA) and the American Medical Association (AMA) have reportedly given the thumbs up to the tax over the Botax.
The tanning industry, not surprisingly, opposed the tax. And the fact that the plastic industry got a pass over the tanning industry had nothing to do with one having a more powerful lobby than the other.
Nor is there any truth to the fact that the potentially discriminatory Botax sent the wives/girlfriends/companions of our Congressional officials into a mad panic. I might have just made that part up. Or not.
For their part, the medical profession is touting the measure as a good way to keep folks healthy. Taxing the bad stuff, that is. Cause it works soooooo well for cigarettes. We like to tax carcinogens in this country. We’ll keep ‘em legal – but we’ll tax ‘em.
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You wrote:
“And yes, it won’t raise as much money as the plastic surgery tax. That tax, referred to as the Botax, was expected to raise $5.8 billion in revenue. The tax on tanning? A measly $2.7 million.”
That 2,000-fold difference really caught my eye.
After checking out the NYT and WSJ, I believe you actually meant to write $2.7 Billion (with a B, not an M.)
Tanning tax is projected to raise less revenue, but by a factor of two, not a factor of 2,000.
You’re absolutely correct. Again, the perils of posting during the holidays with a sick kid. When’s that vacation again?
Larry Kudlow interviewed somebody from the tanning industry last night. They made a good point that most of the tanning salons are small businesses/mom & pop shops, and since people are tanning less during this recession, the salon owners have just bearly been staying in business as it is. This measure would kill them.
The next victims will probably be on beauty salons & spas. You wax ‘em, we’ll tax ‘em.