Plastic surgeons, cosmetic/drug companies and patients are protesting the Senate’s proposed 5 percent tax on all elective cosmetic surgeries and procedures such as face lifts, liposuction or Botox injections.
The “Botax” is part of a 10-year, nearly $1 trillion health reform proposal introduced to the Senate about two weeks ago by Senate Majority Leader Harry Reid, D-Nev. The provision, if passed, is estimated to raise around $6 million.
Industry giants, such as Allergan and Johnson & Johnson, are gearing up for battle. Caroline Van Hove, a spokeswoman for Allergan, Inc., the maker of Botox, was quoted by the Associated Press article as saying that the proposed tax is punitive.
"It is a random hit on an easy target that is only punitive and not corrective," said Van Hove. "The bottom line is that taxing cosmetic procedures is unnecessarily punitive on people who have merely decided to enhance their appearance."
Lobbyists and aides familiar with this provision have stated Allergan and Johnson & Johnson already talked lawmakers into cutting the tax from 10 percent to 5 percent.
Cosmetic surgeons say this tax won’t really reach just the wealthy.
The American Society of Plastic Surgeons, ASPS, called it a “Soccer Mom” tax in a news release. According to the same release, 86 percent of cosmetic surgery patients are female and a lot of cosmetic procedure patients are decidedly middle-class.
In 2005, the ASPS conducted a survey of people planning to have cosmetic surgery within the next two years. Forty percent of the respondents reported a household income of $30,000 to $60,000 and only 10 percent reported a household income of over $90,000.
The industry is doing well. In its 2009 3rd quarter earnings report, Allergan projected 2009 Botox net sales to be near $1.3 billion.
Written by Sharalyn Hartwell
HULIQ.com
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