Burning a New Sin Tax
Politicians love to tax sins. Few people smoke these days so if a budget needs to raise some more money, pass another tobacco tax. Or you could go after the booze. It’s an age-old game. Folks don’t get their knickers in a twist when taxes on a sub-set of the population gets hammered as long as it isn’t them paying the way.
Of course, there is a limit as to how much government can tax something before it backfires. Here in New Jersey politicos have raised the tobacco tax so much that the “revenue” it produces has decreased over the years. You would think that a lesson would be learned through such actions.
I tried a tanning bed once when I was in college. I had a membership to a neat gym that had all sorts of facilities. In addition to the tanning bed there were sensory deprivation tanks and a Eucalyptus room. I really liked the Eucalyptus room. Anyhow, lying down in a tube with lights shining on me while I crisp is not my idea of fun or recreation.
Some folks like to tan themselves, however. That’s fine with me. Obviously, in order to tan, someone needs to be in business providing the equipment. That’s good for the economy. It is also a source for the politicos.
Here in New Jersey, we tax tanning salons seven-percent. Yup, to tan oneself indoors, Trenton grabs 7% of the deal. Why? Who cares? Few of us use tanning salons, right? They’re usually those little stores wedged into a strip mall with the “big hairs” running in and out. It doesn’t affect me, why should I care?
Since that tax was instituted, businesses have closed up. Sure, a poor economy contributed too. The tanning salon industry is fading in the Garden State. Soon it will be gone altogether.
Congress and the Obama Administration have targeted tanning salons too. Seeing an opportunity to take profits, it has proposed a 10% tax on the industry. Seriously!
Some will say the tax will discourage tanning use and that is a good thing. If government wants to discourage indoor tanning it can either outlaw it or put a 97% tax on the industry. Both would be far more efficient in reducing use. Just like tobacco taxes, it’s about the money, not the social ill.
So tanning salons have to absorb this tax . . . or pass it off to its customers. Cha-ching!
Customers will pay 17% to the government for the privilege to sit inside under heat lamps. Precious.
Think this will stimulate business here?
Tags: government, New Jersey, Obama, Politics, tax
