by: Jeffrey Quinn
So saith the Obama administration. They've floated the proverbial "trial balloon" in any case.
In July, Treasury Department economic adviser Gene Sperling suggested that an excise tax on elective cosmetic surgery might be just what the doctor ordered to raise at least some of the much needed dough which the proposed health care "reform" would require.
But maybe "not so fast" will be the byline when it comes to the so-called "botox tax," inasmuch as women make up some 91% of cosmetic surgery patients, according to stats put forth by the American Society of Plastic Surgeons.
"Gender discrimination" anybody?
Any way, it's not clear how much such a levee would raise, but estimates are that Americans spent over $10 billion on cosmetic surgery in 2008!
Lots of plastic there.
The Senate Finance Committee has looked at imposing a 10% tariff on cosmetic surgery deemed "unnecessary" according to traditional medical requirements.
Bad enough that tax deductions for cosmetic surgery vanished some years ago, including "any procedure which is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease."
Where would Biden's hair transplant fit within this regimen?
And from our "this is nothing new" department cometh word, last week, from Alabama Congressman Spencer Bachus that the Social Security fiscal fiasco might have nary two more years to play out.
"The situation is much worse than people realize, especially because of the problems brought on by the recession, near depression" quoth Bachus. "What this recession has done to Social Security is pretty alarming. We've known for 15 years (That's all? - ed.) that we were going to have to make adjustments to Social Security, but we still thought that was seven or eight years down the road. But if things don't improve very quickly, we're going to be dealing with that problem before we know it."
Really.
Has Obama appointed a commission to study the problem yet?
CONSULT YOUR TAX ADVISOR - This article contains general information about various tax matters. You should consult your CPA regarding the implications to your own particular situation.
Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He is also a contributor to the recently-published twelfth edition of Tax Savvy for Small Business, published by Nolo. He can be reached at 831-7288, and welcomes comments at
jquinn@ashleyquinncpas.com.
