Although it would supposedly rake in $60 billion over 10 years, the Senate health reform bill’s proposed 5% tax on cosmetic procedures is hardly a tax on the wealthy. On a survey of people planning on having cosmetic surgery:
One-third make less than $30,000 a year.
More than two-thirds (70 percent) of clients make less than $60,000.
Only 13 percent make more than $90,000.
About 85 percent of procedures are purchased on credit.
Plus, there may be no net revenue here. New Jersey taxes cosmetic procedures and spends $3 on administration and collections for every $1 it receives. More on this in an article in Slate.
A brand name pharmaceutical excise tax is expected to result in consumers’ paying higher prices for health care either through higher copays, higher insurance premiums, or both. For the uninsured, the retail price will rise. The increase in the Medicaid rebate will similarly lead the pharmaceutical industry to push up prices on other consumers. In the case of the medical devices fee, the tax will be passed forward to consumers in the form of higher prices as well.
How Much Should the Uninsured be Taxed on Behalf of the UAW? None, says Bill McGurn here.
It's the Benefits, Stupid. The difference between health and pension costs for auto workers in Detroit vs. U.S. auto workers working for Toyota, etc. is $29 per hour. [link]
