Botox, facelifts may cost more as Senate eyes cosmetic surgery tax
By Sandra Block, USA TODAY
If you're considering an eyelift or tummy tuck, you might want to have it done before next year.
Last week, the Senate began debate on an $848 billion health care reform bill that includes a 5% excise tax on elective cosmetic surgery, beginning Jan. 1, 2010. The provision would raise an estimated $5.8 billion in the next decade.
The cosmetic surgery industry has mounted a vigorous effort to convince lawmakers and the public that the tax wouldn't be limited to wealthy people who are unhappy with the shape of their chins. Among their arguments:
The tax would unfairly target middle-class women. Eighty-six percent of cosmetic surgery patients are women, and 60% have an annual income of $30,000 to $90,000, according to the American Society of Plastic Surgeons. Women face much more pressure than men to maintain a youthful appearance, says Jill Filipovic, 26, a lawyer and blogger in New York. "It's an easy choice for senators who are overwhelmingly male to tax something they probably aren't going to use," she says.
The tax would be difficult to enforce. While the bill excludes surgery used to correct deformities stemming from an injury or disease, the distinction between cosmetic and reconstructive surgery isn't always clear, says Dr. Phil Haeck of Seattle, ASPC president-elect. For example, a nose operation to clear an individual's airways wouldn't be taxed, he says.
But if the surgeon also straightens the patient's nose, a common procedure when a patient's nose has been broken, that's considered cosmetic, he says. Such cases, Haeck says, "are going to be very difficult for the government to decipher."
The tax would drive cosmetic surgery abroad. After New Jersey adopted a 6% tax on cosmetic surgery in 2004, many patients went to New York or Pennsylvania for procedures, says Dr. Renato Saltz, president of the American Society for Aesthetic Plastic Surgery. A federal excise tax would have the same effect, but patients would go to Thailand, Mexico or Costa Rica, he says. "We already see a lot of complications from surgeries performed overseas," he says.
Despite the lobbying efforts, there's a good chance the tax will be in the final Senate bill, says Tom Ochsenschlager, vice president of taxation for the American Institute of Certified Public Accountants.
Few lawmakers have expressed opposition to the provision, he says, focusing on polarizing issues such as a government-funded insurance option.