Quote:
Originally Posted by Don Smith  Indoor Tanning Association’s statement on the IRS’s final regulations on the excise tax on indoor tanning services The Indoor Tanning Association is very disappointed the IRS chose to ignore the concerns we and others in the industry raised and did not make changes to the proposed regulations in several key areas. By deciding that “qualified” fitness facilities can continue to avoid the tan tax if UV tanning services are not essentially subject to a separate charge, the IRS ignored ample evidence that those centers are improperly exploiting a loophole to create a competitive advantage over professional indoor tanning facilities. The IRS is acting outside of the plain letter of the statute and is picking winners and losers by exempting gyms from the tax. The IRS further penalized the industry by ruling that registration and freeze fees are subject to the 10% excise tax in spite of the fact that the fees do not pay for tanning services and are clearly unrelated to future taxable tanning services. This is just another blow to thousands of struggling small businesses nationwide. Since 2009, more than 4000 businesses representing 20% of the industry have closed, resulting in thousands of lost jobs in the private sector. The tan tax has only compounded the problem. We estimate 10% of the businesses have closed nationwide as a direct result of the tan tax and data released by the IRS bears this out. Congress should repeal this tax which, on the eve of its three year anniversary, has been difficult and expensive for IRS to implement and is generating a mere fraction of the revenue that was projected when it was enacted. http://www.theita.com/news/128450/Indoor-Tanning-Associations-statement-on-the-IRSs-final-regulations.htm |
All true and all good points; however, when was the last time the government repealed an excise tax? It was never about income to the govt., it was a favor to the AMA for supporting Obamacare, and that is why it will remain.