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ObamaCare Tanning Tax Revenues Were Overcooked

After a week in the sun ObamaCare is showing some serious tan lines. The number crunchers forecasting tax collections from the new 10% levy on tanning booth revenue must have been using some #48 brain block when they estimated receipts. Tanning industry representatives have never seen numbers even remotely approaching Congress' estimates.

According to The Hill:

Representatives for the indoor tanning industry predict the country will never see the $2.7 billion tax on tanning services the healthcare law is supposed to collect.

The Joint Committee on Taxation (JCT) estimated that a 10 percent tax on tanning-bed services would raise $2.7 billion over the next decade, but the industry says there simply aren't enough salons or customer traffic to generate that much revenue.

"We call it fantasy land," John Overstreet, executive director at the Indoor Tanning Association, told The Hill. "There is no one in this industry that thinks those are remotely reasonable revenue targets for the tax."

"For our industry, it [the tax] highlights the disconnect between policymakers and the folks that actually pay the tax," Overstreet said.

The JCT said it could not divulge the economic models it used to come up with the revenue estimate. The Senate Finance Committee did not immediately respond to inquiries on the matter.

Roughly 30 million Americans visit tanning salons at least once a year and pay an estimated $7 for the service. Collectively, these patrons would have to visit a tanning bed roughly 3.9 billion times over the next 10 years to raise the amount of revenue Congress seeks.

However, the cost for most tanning sessions are commonly incorporated into a broader membership fee that includes other services or product purchases.

It's easy to sympathize with Mr. Overstreet and his experience in the fantasyland that has become ObamaCare scoring. Every day brings a new surprise. If it's any comfort to the tanning industry and the many other industries President Obama is attempting to manhandle, consider this. The GOP is three points ahead on the generic Congressional ballot. We all understand that every Congressman is evil except the one in your own district that brings home the pork, but consider that in the tumultuous year of 1994 when Democrats lost the House for the first time in fifty years the generic ballot that day was even.


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Comments (17)

In my mind, every Congressm... (Below threshold)
JJ:

In my mind, every Congressman is evil, especially the one in my district..Slaughter (...oops...threw up a little in my mouth just now)!

The President lied!!!!!... (Below threshold)
Roy:

The President lied!!!!!

Where have I heard that before?

That works out to about 1x ... (Below threshold)
jim m:

That works out to about 1x per month for those 30B people. Not being one of those I couldn't tell you if that is reasonable or not.

A bigger issue is that if membership fees cover the service then collecting the tax will be tougher and they aren't calculating that many will forgo tanning with the price increase.

But the biggest issue is that it is patently racially discriminatory. Of course it discriminates against whites so Obama thinks that's OK.

Economic impact does not eq... (Below threshold)
smould:

Economic impact does not equal revenues. Don't you guys know any basic financial information?

"new 10% levy on tanning bo... (Below threshold)
jim m:

"new 10% levy on tanning booth revenue.."

To which Stevie replies-

the Indoor Tanning Association today represents thousands of indoor tanning manufacturers, distributors, facility owners and members from other support industries.

So?
DO manufacturers receive tanning booth revenue? No. They get revenue from sales of tanning beds.

Do tanning bed/equipment distributors get tanning booth revenue? No. They get revenue from tanning bed and accessory sales.

Do members from support industries get tanning booth revenue? No. They get revenue from the other goods and services related to tanning that they are able to sell.

Do facility owners get tanning booth revenue? Yes!!!!

So of the 4 groups who will be negatively effected by this tax only one actually gets any revenue from the actual service. They will get less revenue because 1)More of that revenue will be stolen by the government and 2) fewer people will tan because they do not want to pay the increased price because at least some of hat tax will get passed on to the consumer.

So steve, your assertion that the revenue should be more or that the impact is a smaller percentage is based pretty much on your complete ignorance of the industry and inability to see the most obvious of distinctions between manufacturers and end retailers.


That's some excellent cut a... (Below threshold)
HughS:

That's some excellent cut and paste research from an industry website, Green. As opposed to, say, an industry rep talking to the press today, which my post was based on.

After your inane lecture on the acceptable level of health insurance industry profit margins today (of you which show a manifest level of ignorance) we will just wait for the as yet undisclosed JCT models used to forecast the tax receipts to settle this debate:

The JCT said it could not divulge the economic models it used to come up with the revenue estimate. The Senate Finance Committee did not immediately respond to inquiries on the matter.

And remember that insulting me or posting from multiple IP addresses (especially those from educational institutions) under different names or using soque puppets will get you banned here. Your anonymity here comes with a price: a small amount of intellect and some respect.


smould,Ec... (Below threshold)
Kenny:

smould,

Economic impact does not equal revenues. Don't you guys know any basic financial information?

little stevie has repeatedly shown in his postings here that he doesn't know ANY basic information, so he sure doesn't know anything about finances.

Some of the other liberal trolls around here are much better informed. Ryan will have at least some basic knowledge of finances, and Paul Hoosen does, if you can wade through the long winded rants to find it.

It's sad that we're stuck with trolls like little stevie, who's so full of hate he's incapable of learning anything.

Kenny, Note that those lib... (Below threshold)
jim m:

Kenny, Note that those libs who know something about finance are keeping their mouths shut on this subject. They know the dems have screwed this one up royally,

It's sad that we'r... (Below threshold)
Brett:
It's sad that we're stuck with trolls like little stevie, who's so full of hate he's incapable of learning anything.

Why do you say that? The role of 'village idiot' has a proud tradition dating back centuries. Village idiots have long provided a very valuable service to society, by giving us all someone to feel superior to. I mean, there but for the grace of God go you and I. Steve is upholding that in fine fashion, and should be applauded for it.

Jim,Note ... (Below threshold)
Kenny:

Jim,

Note that those libs who know something about finance are keeping their mouths shut on this subject. They know the dems have screwed this one up royally,

Yep, they're awfully quiet on this issue.

"The JCT said it could not ... (Below threshold)
GarandFan:

"The JCT said it could not divulge the economic models it used to come up with the revenue estimate."

I wasn't aware that 'economic models' were classified "TOP SECRET" by our overlords in the Obama Administration.

Or could it just be some liberal idiot with a calculator going 30M x 7 x 10 / 10%. "Yeah, that's close enough for government work."

What the heck, that's not t... (Below threshold)
GarandFan:

What the heck, that's not the only 'rosy' revenue projection that is phony. EVERYONE KNOWS that people don't change their economic activities when the government changes the tax structure. Right?

Just look what happened when the sales tax was raised in California. Tax revenue fell. Who knew?

Taxing tanning beds? Dispro... (Below threshold)
Jay Guevara:

Taxing tanning beds? Disproportionate impact, baby! See you in court, racist!

Is Joey Biden aware of this... (Below threshold)
GarandFan:

Is Joey Biden aware of this coming tax? Ooops! Scrub that. Democrats don't pay taxes.

Oh hell, just rename them V... (Below threshold)
epador:

Oh hell, just rename them Vitamin D photo-therapy units and the tax goes away.

"Oh hell, just rename them ... (Below threshold)
jim m:

"Oh hell, just rename them Vitamin D photo-therapy units and the tax goes away."

No. Now they are medical devices and subject to that new tax.

But heck, who cares if we are taxing grandma's walker? The bitch should hurry up and die so she stops costing everyone money. /Obama

Easily do-able.</... (Below threshold)
HughS:

Easily do-able.

Only for an idiot that does not understand static tax analysis.

Tax avoidance will decimate the as yet undisclosed models used by the JCT to forecast these receipts. Cruise a few gyms and stand alone tanning centers to get a clue.

And while you're at it Green, find a fixed IP to use. You're giving Cal Berkley a bad name.




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