Observations
Proposed "Bo-tax" dropped from US reform bill
Levy deemed discriminatory and ineffective
A 5% US tax on elective cosmetic surgery has been dropped after a lobbying campaign by plastic surgeons and firms including Botox manufacturer Allergan.
The levy, dubbed the "Bo-tax," was originally included in the Senate’s health care reform bill to raise an estimated $5.8bn for US legislation over the next 10 years.
But the tax came up against considerable opposition from interest groups, who argued that it was discriminatory and ineffective.
Dr Michael McGuire, president of the American Society of Plastic Surgeons, says: "Elective surgery taxes discriminate against women, given that 86% of cosmetic surgery patients are female. Cosmetic surgery is no longer an exclusive luxury afforded by the very wealthy, but rather a mainstream and reasonable option most common amongst the working middle-class."
Allergan lobbied online to stop the tax through a dedicated website and a Facebook page. A spokesperson for Allergan says the tax would not reduce health care costs: "These are elective procedures that middle-class women are paying for out of their own pockets."
The tax has been replaced with a 10% levy on indoor tanning to make up the shortfall.
New Jersey is currently the only state with a cosmetic surgery tax which it introduced in 2004. But the levy is drawing criticism because it is only generating a third of its $30m annual projection.
