Monday, July 5, 2010

Vanity Taxes - Botox vs Tanning

Last year, eyebrows were raised over the government's attempt to impose a 5% tax on cosmetic surgery, including botox injections, breast augmentations and other elective surgeries. This tax was projected to raise an estimated $5.8 billion dollars to help fund the new $940 billion health care bill. Botox escaped the "botax" and remains tax exempt since it is classified as a prescription drug used to treat TMJ, joint disorders, and a host of other medical conditions.

The new target? Tanning. A 10% tanning tax went into effect on July 1st and is expected to bring in $2.7 billion in the next ten years. The American Academy of Dermatology is thrilled since indoor tanning poses a potential health risk. Not surprisingly, tanning salons and tanning enthusiasts are outraged. This tax applies to any electronic products designed for tanning that use one or more ultraviolet lamps with wavelengths between 200 - 400 nanometers. Spray tans, tanning lotion, and sunless tanning products are not included in the tax.