Category: News

Four years of ASA lobbying efforts have Congress finally seeing the light: ‘The Tan Tax’ was a total failure

If Benjamin Franklin’s adage is true that nothing is certain but death and taxes, then it should also be said that eliminating a tax is virtually next to impossible.

And yet, after four years and more than 1,200 meetings with members of Congress on Capitol Hill, the American Suntanning Association’s cornerstone lobbying objective – repealing the devastating 10 percent Tan Tax – is one Senate vote, conference committee and presidential signature away from being history. That’s because the U.S. House of Representatives voted May 4 to repeal the Tan Tax as part of the American Health Care Act of 2017.

There’s work left to do, but the Tan Tax is closer to the scrap heap than ever. What had to happen to make the impossible possible?

“The amount of effort that went into putting us in this position is beyond colossal,” ASA President Melinda Norton said. “The ASA federal lobbying team – both staff and volunteers – has put tens-of-thousands of hours into telling our story on Capitol Hill: that the tax failed as a revenue producer for Obamacare, closed more than 9,000 businesses, killed 95,000 jobs and pushed those who wish to use sunbeds into non-salon tanning where sunburn was more likely. Congress understands: It’s hard to imagine any other way the tax could have been a failure.”

Click here to read the entire article in the latest issue of Smart Tan Magazine online.

After weeks of debate, the U.S. House of Representatives just passed the repeal of the 10% Tan Tax as part of the American Health Care Act of 2017, the replacement of Obamacare. In this House version the Tan Tax will be repealed effective December 31, 2017. This vote is very encouraging but only the first step in the legislative process.  The bill will now move to the Senate where it is likely to be amended and will then return to the House. The ASA advocacy team will continue to fight for the Tan Tax repeal to remain in the bill as it moves through the legislative process and hopefully to the desk of President Trump.

While the bill still needs to pass the Senate, this is a tremendous victory for the ASA and the entire industry.  Thank you to all of you who have supported the ASA and our federal advocacy efforts.

If you would like to review the bill the Tan Tax Repeal can be found on page 123:
https://www.gpo.gov/fdsys/pkg/BILLS-115hr1628rh/pdf/BILLS-115hr1628rh.pdf

Thank you for your support,

American Suntanning Association

10% tax has devastated an industry, resulting in the closure of nearly 10,000 small businesses and loss of 100,000 jobs since 2010

WASHINGTON, DC (March 8, 2017) – The American Suntanning Association (ASA) today endorsed action taken by Congress to repeal the 10% federal excise tax on indoor tanning. The repeal is included in the draft American Health Care Act introduced this week by Congress.

“We applaud Congress for taking action to repeal this onerous and unfair tax, which has crippled an industry and hurt small business owners across the country,” said ASA President Melinda Norton.

Since the tan tax went into effect in 2010, approximately 10,000 small business-owned salons – more than half of all tanning salons in the U.S. – have closed, resulting in the elimination of nearly 100,000 jobs in communities across the country.

At the same time, the tax has generated less than one-third of the revenue projected by the Congressional Budget Office, or an average of only $84 million per year. With the IRS allocating $11 million annually to collect and administer the tax, coupled with Small Business Administration loan defaults and the loss of income and payroll taxes from closed salons, the net impact of the tax has arguably been negative to the U.S. Treasury.

In addition, a recent study published by world-renowned researchers finds insufficient sun exposure to be an emerging health problem in the United States, and calls for our government to alter its public health advice from one of sun avoidance to a recommendation of regular non-burning sun exposure for most Americans. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5129901/

“The tan tax is a perfect example of misguided government policy, implemented with little forethought or regard for the American public, and we applaud Congress for taking action to repeal it,” Norton added.

NOTE: PLEASE REFER MEDIA REQUESTS REGARDING THIS MATTER TO THE AMERICAN SUNTANNING ASSOCIATION AT 855-879-7678 OR MEDIA@AMERICANSUNTANNING.ORG.

The American Suntanning Association (ASA) is a Section 501(c)(6) nonprofit organization representing professional sunbed salon owners committed to responsible and balanced sun care. The ASA urges a facts-based discussion among the industry, medical community and government regarding the risks and benefits of UV exposure. For more information, visit www.americansuntanning.org