BizJournals Portfolio
Dec 22 2009 8:41am EDT

Dark Skies for Tanning Industry

The indoor tanning folks really didn't stand a chance in the health reform debate.

To help pay for President Obama's reform, Senate Democrats propose a 10 percent tax on tanning salons, estimated to raise $2.7 billion over 10 years. The measure replaces a proposed tax on cosmetic surgery that was estimated to raise more than twice that amount.

Forget the fact that critics say the salons contribute to skin cancer and this looks like an easy Sin Tax for politicians in Washington. The tanning industry has zero to little political clout. Operated largely by small operators, the size of the market isn't even clear. The industry's trade group says it employs 160,000 people and "generates an economic impact of more than $5 billion annually."

As of June 30, the Indoor Tanning Association PAC gave $4,500, mostly to Republicans, for the 2010 political cycle, according to the Center for Responsive Politics. By comparison, the American Academy of Dermatology Association gave $187,000, mostly to Democrats.

The dermatologists' PAC had $261,385 in cash on hand, or more than 10 times that of the tanning industry group.

"We suggested that the tanning tax would be a better alternative to the cosmetic tax and hopefully will reduce the incidence of skin cancer down the road," David M. Pariser, president of the dermatologist association tells the Wall Street Journal.


Brett Chase covers health care for Portfolio.com and writes the blog Heavy Doses.

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