Saving up for a tummy tuck or budgeting for Botox? Well, it looks like you might need to save up a bit more - about 10% more. National news sources have been abuzz over a potential excise tax that would be imposed on elective surgeries and cosmetic procedures such as liposuction, skin fillers, teeth-whitening procedures and Botox injections. Basically, the tax would apply to any procedure which is disallowed as deductible medical expenses under Section 213(9) of the Tax Code. This tax was proposed by Treasury Department economic adviser Gene Sperling as part of an administration effort to help finance the trillion-dollar healthcare overhaul plan.
Although the idea was brought up in a mid-July meeting, so far it doesn’t yet appear to be a serious consideration amongst the Senate committee. Senate Finance chairman Max Baucus told reporters that the tax idea was discussed briefly, but is currently not under active consideration.
If this proposal should ever become tax law, this new tax would likely be shouldered mostly by women, since women currently make up over 90 percent of the cosmetic patient demographic in the United States. And since many cosmetic surgeons and dermatologists offer financing options, the quest for beauty isn’t just for the rich anymore. In fact, according to a survey conducted by the American Society of Plastic Surgeons approximately one third of people considering plastic surgery reported average household incomes below $30,000!! Less than 10% reported incomes over $90,000. Essentionally, this tax burden would be shouldered by the lower to middle class. Needless to say, a proposed excise tax on cosmetic procedures would also face serious opposition from many plastic surgeons, as it would dramatically cause a drop in patient bookings.
Let’s just hope that Congress doesn’t decide to slap a tax on beauty.
