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Tanning Tax Slump

Recorded on October 14, 2011

From the Heritage Foundation, I'm Ernest Istook.

As Obamacare is being phased in, plenty of businesses are already blaming its higher costs as the reason they are discontinuing health care coverage for employees.

But one of the lesser impacts is fascinating. Remember the tanning tax—the new 10% Obamacare tax on going to a tanning salon?

It was projected to bring in over $200-million a year. Instead, the revenue has been only one-fourth of that.

There are about 25,000 tanning salons in America, and the tax was expected to raise about $40,000 from each of them on average. But only about half of them are paying.

The best thing would be to repeal Obamacare and abolish the tanning tax. Instead, look out for an IRS crackdown on getting a tan—as though they didn't have more important things to do.

From the Heritage Foundation, I'm Ernest Istook.