News Brief
from the desk of MARY GILLESPIE
Did you know…..?
New Jersey has become the first state to enact a vanity tax on cosmetic surgery and Botox injections the 6% tax is projected to raise an estimated $25 million a year. The Illinois state comptroller has proposed a 6% cosmetic surgery tax to fund a stem cell research institute if approved goes to the voters in 2006. The state of Texas 7.5% tax on elective cosmetic surgery was passed by the House awaiting Senate approval. Washington state cosmetic surgery 6.5% tax has gone a step further encompassing any procedure improving appearance including teeth whitening, hair replacement, Botox and chemical peels. If approved will fund the previous cut to Washington’s children’s health services paying for women and children without health insurance. The tax expected to raise an estimated $20 million the first year and $30-$38 million over a two year period the proposal would cut doctors business and occupation tax by 7.8 million a year. The American Society for Plastic Surgeons (ASPS) says by taxing the patient-client to fund welfare services and reduce doctors operational costs would deter patient-clients reducing the doctors over all income and adding to the stress of declining insurance reimbursements and heavy malpractice insurance premiums. The collection of this tax may violate HIPAA privacy rule as procedures will now be on government record Baby Boomers may not have the luxury of silently slipping off to have “something done” as in the past. The ASPS reports 86% of cosmetic procedures is women and 60% planning surgery in the next 2 years have reported an annual income of $30-$90 thousand showing cosmetic improvement has gone mainstream.
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