Monday, December 21, 2009

Senate Bill Removes ‘Botax,’ Adds Tanning Tax

The Democratic leadership decided to remove the 5% plastic surgery tax from the latest draft of their health care reform bill. The tax was expected to generate $5 billion in federal revenue, and to make up for the loss they have replaced it with a 10% tax on indoor tanning services.

According to the Wall Street Journal, the change is a victory for the American Medical Association, which urged lawmakers to remove the cosmetic-surgery tax after Sen. Reid included it in a draft of the bill he unveiled in November. The medical industry argued that the tax effectively discriminated against women, since they’re more likely to undergo such procedures.

The tanning tax is part of a last-minute package of amendments that are expected to be included in the final bill. It grants an exception for “phototherapy” services that are performed by licensed medical professionals.