Should the Obamacare Tanning Tax be Repealed? (S. 2600)

What is S. 2600?

(Updated April 18, 2021)

This bill — the Tanning Tax Repeal Act of 2018 — would repeal the 10% excise tax on indoor tanning services which was imposed by the Affordable Care Act (commonly known as Obamacare).

Argument in favor

Obamacare shouldn’t have included a 10% tax on indoor tanning services, so this bill repealing that tax should be passed.

Argument opposed

People are free to go to indoor tanning salons if they choose and making them pay a 10% tax for those services is wise.

Impact

People who go to tanning salons; tanning salons; and the IRS.

Cost of S. 2600

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Introduced by Sen. Rand Paul (R-KY) and cosponsored by Sen. Heidi Heitkamp (D-ND), this bill would repeal the 10% tax on tanning services imposed by Obamacare.

The tanning bed industry has argued that the tax has forced many small operators out of business and some evidence shows a drop demand that could be tied to the tax, although other factors (like competition from spray-tan facilities) could be responsible.

Of Note: Repeal of the tanning tax was included in the GOP’s American Health Care Act, which would’ve repealed and replaced Obamacare had it not stalled in the Senate.

Media:

• CNN (Context)
  
• Marketwatch (Context)