A new 10 percent tax on indoor tanning beds that goes into effect July 1 already has the tanning industry irate. But some dermatologists say it may help promote safer tanning practices.
The Indoor Tanning Association expressed frustration that tanning businesses have been given no specifics on how the tax will work.
“What the folks at the IRS don’t understand is that payment doesn’t always come when the service is performed and a lot of times these services are purchased in packages,” said ITA spokesman John Overstreet. The packages often include ultraviolet–bed services along with sunless spray-on treatments.
Some dermatologists hope the tax will deter risky behavior and help pay for health care costs associated with skin diseases.
“This can help defray some of the health care costs because, quite frankly, increasing the risk of skin cancer like that is going to increase health care costs in the future,” said dermatologist and skin cancer survivor Dr. Elizabeth Tanzi. “ I know treating skin cancer is not an inexpensive thing to do.”
Government analysts expect the tanning tax to bring in $2.7 billion over 10 years. Originally, the health care legislation included a 5 percent excise tax on electric cosmetic procedures that would have generated $5.8 billion in revenues over 10 years. But lawmakers replaced the proposed “Bo-tax” with the tanning tax before the bill became final.
Some economists recognize this tax passed more so by way of political lobbying more than by economic merit.
“It’s not a very clever or smart policy but it’s the kind of policy that makes it over the political hurdle since the burden falls on a constituent that has no political clout and it’s something Americans are not outraged about,” said Chief Economist Diane Lim Rogers of the Concord Coalition, a nonprofit think tank that promotes fiscal responsibility and reducing federal budget deficits.
“I think that more revenue is better than less—it’s not a brilliant tax, but an increase is better than a tax cut,” said Ro.
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