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Side Effects: New Tanning Tax Burns Business Owners

Posted By Brandon Stewart On April 7, 2010 @ 1:00 pm In Obamacare | Comments Disabled

In the days and weeks following the signing of Obamacare into law, Administration officials have attempted to promote all of the legislation’s immediate impacts. Owners of tanning salons across the country are already seeing one of those immediate impacts—a whopping 10% tax.

One salon owner in Western Oregon laments in an interview [1] with a local TV station, “10% of everything you make to the federal government. That is tough on top of all of the taxes we are paying today.” Another salon employee at a Michigan-based business echoed those concerns in a separate interview complaining [2], “It’s not fair. This is a choice and now the government is telling you because you make this choice we are going to give you a 10% tax on this. Where’s it going to stop?”

That’s a question many business owners are asking themselves these days. From the looming reinstatement of the estate tax [3] to new regulations about employee health insurance [4], employers are reeling from taxes and the prospect of more to come. As we reported [5] earlier this year, “one in 6.25 small business owners [6] (PDF) who say now is not a good time to expand their businesses say the uncertain political climate is the reason.”

In the video, some owners even discussed the possibility of closing because of the new tax burden. As one Nebraska-based business owner put it [7], “There comes a time when you have  to close your door and cut your losses.”

Foundry readers will not be surprised that higher taxes often stunt job growth, a topic we’ve discussed here before [5]. We just need the Obama administration and this Congress to get a clue.


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2010/04/07/side-effects-new-tanning-tax-burns-business-owners/

URLs in this post:

[1] an interview: http://www.wndu.com/home/headlines/89295577.html

[2] complaining: http://abclocal.go.com/wjrt/story?section=news/local&id=7350639

[3] reinstatement of the estate tax: http://www.foundry.org/2010/02/06/who-profits-from-the-death-tax-estate-planning-lawyers/

[4] new regulations about employee health insurance: http://www.foundry.org/2010/03/18/obamacares-biggest-losers/

[5] we reported: http://www.foundry.org/2010/02/23/uncertainty-from-washington-hampering-job-creation/

[6] one in 6.25 small business owners: http://www.nfib.com/Portals/0/PDF/sbet/sbet201001.pdf

[7] put it: http://new.khastv.com/modules/news/article.php?storyid=20453

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