Alan Greenspan, the former chairman of the Federal Reserve, has the wonderful quote:
Whatever you tax, you get less of.
It’s something our Congresscritters might take to heart…but I doubt it. Today, let’s look at the tanning tax.
This tax is one of the many ways that Congress had to pay for ObamaCare (aka the Affordable Care Act). Like almost everything else with ObamaCare, it’s not working as expected. The tax was predicted to generate $200 million annually. Instead, it’s took in $91 million in 2012 (the last year there are statistics for).
In this Politico article, Barton Bonn, Head of the American Suntanning Association, notes,
It’s effectively a price increase for our customers…Anybody knows that if you increase the price on a product or service, some people are not going to show up after the price increase, and that’s what occurred.
I’m not sure Mr. Barton is correct; I suspect some in Congress do not understand the law of supply and demand. In any case, it’s just another of the many tax flaws with ObamaCare.
Tags: HealthCareLegislation