The “Botax” is a Regressive Tax
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.
One more regressive tax on middle income folks by the vey same Administration that promised this would never happen.
Am I surprised? Of course not.
This is both surprising and irritating.
I agree with Vicki. This is a total repudiation of Obama’s campaign promises.
Proponents of taxing cosmetic surgery like to think cosmetic surgery is something only the wealthy can afford. But, increasingly, it is within reach of the middle class. Taxing one industry to subsidize another is never a good idea.