Senate’s Snowe offers bill to repeal tanning tax

While a tax on tanning beds might seem like a minor issue, Grimm argues it is a serious matter that hurts small businesses and the economy. 

“American small-business owners, the drivers of our economy, don’t think it’s a laughing matter,” Grimm said in a statement when the bill was introduced. “This unfair punishment of small businesses must be repealed.”

The tax was included in the healthcare overhaul in part because of concerns that indoor tanning can lead to a higher risk of skin cancer. 

The industry argues ill health effects from their services are exaggerated. 

Grimm and the other lawmakers don’t provide an offset for the estimated $2.7 billion that the tax would raise, though pay-for is expected to be worked out in committee. 

The tax was implemented July 1 and there aren’t any details on how much has been collected. 

The bill has the backing of several groups including the Indoor Tanning Association (ITA), the National Taxpayers Union (NTU) and Americans for Tax Reform (ATR). 

Other sponsors of the House legislation include Reps. Patrick Tiberi (R-Ohio) and Phil Roe (R-Tenn.). 

Dan Humiston, president of the tanning association,  has estimated that the tax could hit as many as 18,000 tanning businesses across the country. 

“In reality, this tax takes money out of the pockets of some of those least able to afford it — working women, who are not only customers but also make up a majority of our business owners, and college students, who are both customers and employees,” Humiston said.

Congress already has repealed one part of the healthcare law that required businesses to report all purchases of $600 or more to the IRS. That requirement was also included as a revenue-raiser for the healthcare law, and the $21 billion cost of repeal was offset. 

Opponents of the tax also argue that it couldn’t possibly raise the $2.7 billion over 10 years estimated by the Joint Committee on Taxation (JCT). The JCT has said it could not divulge the economic models it used to come up with the revenue estimate. 

Other co-sponsors of the legislation include Reps. Geoff Davis (Ky.), Robert Latta (Ohio), Billy Long (Mo.), Ron Paul (Texas), Mike Pence (Ind.), Todd Young (Ind.), Frank Guinta (N.H.), Steve Stivers (Ohio), Tim Walberg (Mich.), Thaddeus McCotter (Mich.), Marlin Stutzman (Ind.), Marsha Blackburn (Tenn.), Brett Guthrie (Ky.), Jason Chaffetz (Utah), Lynn Westmoreland (Ga.), Tim Huelskamp (Kan.), Richard Hanna (N.Y.), Kevin Yoder (Kan.), Mike Pompeo (Kan.), Lynn Jenkins (Kan.), Bill Huizenga (Mich.), Lee Terry (Neb.), Sam Graves (Mo.), Rick Crawford (Ark.), Jeff Denham (Calif.) and Reid Ribble (Wis.), Mike Rogers (Mich.).