"Botax" Update: Tanning Industry Concerned About New 5% Tax

by jfrentzen 1/5/2010 1:57:00 PM
Kelly Merritt, a correspondent for the Naples (Fla) Daily News, reports that tanning customers aren’t happy about helping foot the bill for public health care. Yet, the AAD supports shifting the proposed 5% federal tax from cosmetic procedures to the tanning industry and the underlying tanning bed and supporting industries. POLL: Potential tanning tax develops concern in the industry:

Supporters of the tax have called it a sin tax that will help stigmatize tanning beds for consumers.

But Indoor Tanning Association representatives say the benefits of moderate exposure to ultraviolet light, including its stimulation of the body’s production of vitamin D, shouldn’t be discounted.

The tanning tax is in lieu of a previous 5 percent tax on elective cosmetic procedures like Botox, now infamously referred to as the “Bo-tax.”

That section of the proposed health-care bill caved under pressure from lobbyist groups that included members of the medical industry. The New York Times reported one such example, StopCosmeticTax.org, which was financed in part by Allergan, maker of Botox.

Dr. David M. Pariser, president of the American Academy of Dermatology (AAD), said his association proposed consideration of the indoor-tanning tax instead of the cosmetic tax. Representatives from the AAD contacted senators with the message that reducing skin cancer in the future would reduce health-care costs.

Pariser added that the tanning tax would “raise a little revenue now.”

The Congressional Joint Committee on Taxation predicts the tax will raise $2.7 billion over the next decade.

Opponents of the cosmetic tax lobbied that it discriminated against women, who receive the majority of cosmetic surgery and anti-aging injections.

But that argument doesn’t carry much water with customers or tanning salon owners.

About 80 percent of all cosmetic procedures are performed on Caucasian women, according to the American Society for Aesthetic Plastic Surgery, about the same number of women who tan indoors regularly.

They will bear most of the financial burden of the tanning tax, which to members of the tanning industry is just as discriminatory as the cosmetic procedure tax would have been.

“The cosmetic surgery industry has a much stronger lobby than we do, and Congress does not serve the weak — it serves the mighty,” Toepfer said. “All of the money they’ll collect wouldn’t even pay the congressional airline bill. It wouldn’t be so bad if they were going to use the money wisely, but the government is just going to squander it like they always do.”

The tanning tax will apply to services performed on or after July 1, 2010, and the amendment specifically defines indoor tanning as a “service employing any electronic product designed to incorporate one or more ultraviolet lamps intended for the irradiation of an individual by ultraviolet radiation.”

But the tanning tax excludes ultraviolet treatment, also known as phototherapy, performed by licensed medical professionals for use in treating skin disorders like psoriasis and eczema. This facet of the bill has tanning industry professionals scratching their heads.

Read it here. In a response to this article, ebernays writes:

News reports earlier this year stated that “…international cancer experts have moved tanning beds and other sources of ultraviolet radiation into the top cancer risk category, deeming them as deadly as arsenic and mustard gas.”

Indoor tanning before age 30 has been associated with a 75 percent increase in the risk of melanoma, the deadliest form of skin cancer, according to a review of medical literature last summer by the International Agency for Research on Cancer, part of the World Health Organization.

This tax, like taxes that have been put on tobacco and alcohol, will hopefully decrease usage of indoor tanning beds and thus reduce skin cancer.

And, what is a 10% tax. If a tanning session costs $10, that means a tax of $1. Is this really a budget buster for tanning salon owners and users?

Earlier Plastic Surgery Tax That Failed in Jersey Taints US Plan

by jfrentzen 12/7/2009 1:23:00 PM

Bloomberg's Nicole Gaouette has written an insightful news piece that details how New Jersey's tax on cosmetic surgery -- begun in 2004 -- is being held up by some as an example of failed health care policy in light of the proposed 5% "Botax" now before the US Congress. The levy is included in the Democrats’ health-care overhaul, now being debated in the U.S. Senate.

The New Jersey tax hasn’t been worth the controversy that followed, said Joseph Cryan, the assemblyman who proposed it. It has spurred sometimes angry debate from doctors over the medical necessity of procedures, and chased customers out of state, he said. It also prompted charges of discrimination against middle- class women, who make up the majority of patients, according to the American Academy of Cosmetic Surgery.

”It was a real education,” said Cryan, a Democrat who now wants the levy repealed, in a telephone interview. “We essentially discouraged the business from happening at all.”

Susan Hughes, a Cherry Hill, New Jersey, facial surgeon, said her business dropped by 10 percent when patients began crossing the state line to Pennsylvania. Administering the tax strained relationships with patients, and created extra work and costs for her office, she said.

‘You Idiots’

“We become the tax collector,” Hughes said in a telephone interview. “Now you’re going to repeat that on a national level? You idiots!” Hughes’s office manager, Jaime Castle, said she’s also concerned about layering the taxes, making New Jersey residents pay a combined 11 percent.

In the U.S., about 12 million people spent $10.3 billion in 2008 on cosmetic procedures and products, according to the American Society of Plastic Surgeons, based in Arlington Heights, Illinois. About 90 percent of patients are females, the Society said on its Web site.

Americans paid $391 on average for a treatment with Allergan Inc.’s brow-smoothing Botox, $3,348 for breast enlargements using implants made by Allergan Inc. and New Brunswick, New Jersey-based Johnson & Johnson, and $6,012 for facelifts, according to online data from the society.

Senate Majority Leader Harry Reid, a Nevada Democrat, proposed the U.S. cosmetic care tax without specifying which products or procedures would be taxed. The levy is included in the Democrats’ health-care overhaul, now being debated in the U.S. Senate.

Read it all.

Lively "Botax" Discussion on Secondhand Smoke

by jfrentzen 12/2/2009 7:42:00 AM

A typically shallow anti-cosmetic surgery rant was published recently on Wesley Smith's otherwise entertaining blog, Secondhand Smoke, in which Smith speaks to the proposed federal tax on aesthetic procedures:

...If I believed that taxing services and products with low/negative social utility was proper, I would enthusiastically support this tax.  Cosmetic surgery sucks tremendous amounts of medical resources out of our strained medical sector for (usually) frivolous purposes–and just as harmfully, promotes a very destructive and unrealistic standard of beauty, leading to much pain and destructive behavior. But I don’t, so I oppose the tax.

Comments from readers are in some cases very interesting. To wit:

“Cosmetic surgery sucks tremendous amounts of medical resources out of our strained medical sector…” I must disagree, esteemed Wesley. Cosmetic surgery of the type we’re discussing is paid for entirely by the patient. It’s HIS (or HER) money, not “resources out of our strained medical sector.” It maximizes freedom to let him decide how to spend it. Keep in mind that Americans spend four times more money on pet food than they do on cosmetic surgery.

You also write “[cosmetic surgery is] for (usually) frivolous purposes–and just as harmfully, promotes a very destructive and unrealistic standard of beauty, leading to much pain and destructive behavior.” Again, I disagree. The standards of beauty, unrealistic or not, pre-exist the surgery, and will continue to exist even if the surgery ceased to be. The vast majority of patients are satisfied with the results, and credibly report that plastic surgery improves their quality of life. At heart, cosmetic surgery is not essentially different from cosmetics, hair dying, primitive ornamental scarring and tattooing, even couture. Since it has been around since pre-history, it must answer some deep-seated human need. We humans ARE exceptional creatures, as one of my favorite bloggers has noted.

And...

Set aside concerns about the merits of elective cosmetic surgery for a moment and think about why it is so successful as a business. Here we have a complex surgical procedure that isn’t covered in any comprehensive medical insurance plan or government program, and yet it is affordable to middle class Americans. It wouldn’t be if it were so covered, it would be priced to support bloated insurance and government bureaucracies. You can make a similar observation about Lasik. We could learn a lesson from this about how ensuring that the medical marketplace were a truly free might make medicine affordable.

Read it all.

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