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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