Tanning Tax Repeal Act of 2015

Last updated
Tanning Tax Repeal Act of 2015
Great Seal of the United States (obverse).svg
Long titleTo amend the Internal Revenue Code of 1986 to repeal the excise tax on indoor tanning services.
Announced inthe 114th United States Congress
Sponsored by U.S. Rep. George Holding (R-NC)
Number of co-sponsors111
Legislative history

The Tanning Tax Repeal Act of 2015 was legislation introduced in the U.S. House of Representatives by Congressman George Holding (R-NC). The bill would repeal the national 10% tax on indoor tanning services. [1] Congressman Holding introduced the bill as H.R. 2698 on June 9, 2015. [2]

Contents

By the end of the 114th Congress, the bill had 111 cosponsors. [3]

Background

The 10% tax on indoor tanning services went into effect in 2010. [4] It was passed as part of the Affordable Care Act ("Obamacare"). The IRS enforces the tax: any amount paid for tanning services is subject to a 10 percent excise tax. [5]

Obamacare included 20 new or higher taxes, and the first one to go into effect was the tanning tax. The tanning tax imposes a 10 percent excise tax on all tanning bed customers in the U.S. The tax is collected in addition to state sales tax and income taxes paid by the tanning salon owner. [6]

Since 2010, roughly half of all tanning salons in the United States have closed. Approximately 100,000 jobs were lost due to the closures. [4]

Legislative history

The Tanning Tax Repeal Act had two main actions in the House: [2]

Although the bill was never acted upon in the Ways and Means Committee, the bill's language was incorporated into a larger piece of legislation, the Restoring Americans’ Healthcare Freedom Reconciliation Act of 2015 (H.R. 3762). That larger bill passed the House and Senate and was sent to President Barack Obama, who vetoed it. [4] The House tried to override the veto with the required two-thirds vote, but failed to get enough votes to do so. [7]

See also

Related Research Articles

Frank LoBiondo American politician

Frank Alo LoBiondo is an American businessman and politician who served as the U.S. representative for New Jersey's 2nd congressional district from 1995 to 2019. He is a member of the Republican Party. He represented all of Atlantic, Cape May, Cumberland and Salem Counties and parts of Camden, Gloucester, Burlington, and Ocean Counties. In November 2017, LoBiondo announced that he would retire from Congress at the end of his term, and did not seek re-election in 2018.

Childrens Health Insurance Program Health Insurance program for families administered by the United States

The Children's Health Insurance Program (CHIP) – formerly known as the State Children's Health Insurance Program (SCHIP) – is a program administered by the United States Department of Health and Human Services that provides matching funds to states for health insurance to families with children. The program was designed to cover uninsured children in families with incomes that are modest but too high to qualify for Medicaid. The program was passed into law as part of the Balanced Budget Act of 1997, and the statutory authority for CHIP is under title XXI of the Social Security Act.

Pat Tiberi American politician

Patrick Joseph Tiberi is an American lobbyist and politician who served as the U.S. representative for Ohio's 12th congressional district from 2001 to 2018. His district included communities north and east of Columbus. He is a member of the Republican Party, and previously served in the Ohio House of Representatives from 1993 to 2000. He briefly served as Chair of the new Republican Main Street Congressional Caucus from September 7, 2017.

Budget reconciliation is a special parliamentary procedure of the United States Congress set up to expedite the passage of certain budgetary legislation in the United States Senate. The procedure overrides the filibuster rules in the Senate, which may otherwise require a 60-vote supermajority for passage by the Senate. Bills described as reconciliation bills can pass the Senate by a simple majority of 51 votes or 50 votes plus the Vice President's as the tie-breaker. The reconciliation procedure also applies to the House of Representatives, but it has minor significance there, as the rules of the House of Representatives do not have a de facto supermajority requirement. Due to greater polarization, gridlock, and filibustering in the Senate in recent years, budget reconciliation has come to play an important role in how the United States Congress legislates.

The 1998 Internet Tax Freedom Act is a United States law authored by Representative Christopher Cox and Senator Ron Wyden, and signed into law as title XI of Pub.L. 105–277 (text)(PDF) on October 21, 1998 by President Bill Clinton in an effort to promote and preserve the commercial, educational, and informational potential of the Internet. The law bars federal, state and local governments from taxing Internet access and from imposing discriminatory Internet-only taxes such as bit taxes, bandwidth taxes, and email taxes. It also bars multiple taxes on electronic commerce.

Mimi Walters California politician

Marian Elaine "Mimi" Walters is an American businesswoman and politician. A Republican, she served from 2015 to 2019 as the U.S. representative for California's 45th congressional district.

Joe Donnelly United States Ambassador to the Holy See

Joseph Simon Donnelly Sr. is an American attorney, politician, and diplomat who served as a United States senator from Indiana from 2013 to 2019. Since 2022, he has served as the United States Ambassador to the Holy See.

The federal telephone excise tax is a statutory federal excise tax imposed under the Internal Revenue Code in the United States under 26 U.S.C. § 4251 on amounts paid for certain "communications services". The tax was to be imposed on the person paying for the communications services but, under 26 U.S.C. § 4291, is collected from the customer by the "person receiving any payment for facilities or services" on which the tax is imposed.

The Military Readiness Enhancement Act was a bill introduced in the U.S. House of Representatives in several sessions between 2005 and 2009. It would have amended title 10, United States Code to include a policy of nondiscrimination on the basis of sexual orientation, replacing the policy known as "Don't ask, don't tell" (DADT), which banned disclosing one's homosexuality while serving in the Armed Forces.

Erik Paulsen American politician

Erik Philip Paulsen is an American businessman and politician who represented Minnesota's 3rd congressional district in the United States House of Representatives from 2009 to 2019. A member of the Republican Party, he served in the Minnesota House of Representatives from 1995 to 2009 and as majority leader from 2003 to 2007.

Affordable Care Act U.S. federal statute also known as Obamacare

The Affordable Care Act (ACA), formally known as the Patient Protection and Affordable Care Act, and colloquially known as Obamacare, is a landmark U.S. federal statute enacted by the 111th United States Congress and signed into law by President Barack Obama on March 23, 2010. Together with the Health Care and Education Reconciliation Act of 2010 amendment, it represents the U.S. healthcare system's most significant regulatory overhaul and expansion of coverage since the enactment of Medicare and Medicaid in 1965.

Rich Nugent American politician

Richard B. "Rich" Nugent is an American retired law enforcement officer and former United States Congressman. He is a member of the Republican Party. He is a former Sheriff of Hernando County, Florida. On November 2, 2010, Richard Nugent defeated Democratic nominee James Piccillo, to replace retiring Congresswoman Ginny Brown-Waite. Nugent was a member of the Tea Party Caucus. On November 2, 2015, Nugent announced he would not seek reelection.

An act to repeal the Patient Protection and Affordable Care Act

The bill H.R. 45 is a bill that was introduced into the United States House of Representatives in the 113th United States Congress. If enacted, the bill would repeal the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, commonly referred to as Obamacare.

The Affordable Care Act (ACA) is divided into 10 titles and contains provisions that became effective immediately, 90 days after enactment, and six months after enactment, as well as provisions phased in through to 2020. Below are some of the key provisions of the ACA. For simplicity, the amendments in the Health Care and Education Reconciliation Act of 2010 are integrated into this timeline.

Suspending the Individual Mandate Penalty Law Equals Fairness Act

The Suspending the Individual Mandate Penalty Law Equals Fairness Act is a bill that would delay for one year the imposition of penalties associated with the requirement that most residents of the United States have health insurance coverage beginning in 2014. This penalty was imposed by the Affordable Care Act. The penalty starts at 1 percent of taxable income in 2014, increasing to 2 percent in 2015 and 2.5 percent in 2016. The minimum payment in 2014 will be $95, unless that is changed by the passage of this law.

The United States Federal Budget for Fiscal Year 2016 began as a budget proposed by President Barack Obama to fund government operations for October 1, 2015 – September 30, 2016. The requested budget was submitted to the 114th Congress on February 2, 2015.

The individual shared responsibility provision, less formally known as the individual mandate, was the health insurance mandate imposed on individuals by the Affordable Care Act in the United States until tax year 2019. This individual mandate required most individuals and their families to have a certain minimal amount of health insurance, with certain exemptions. Otherwise, they were required to pay the individual shared responsibility payment as a fine. It was one of the many Affordable Care Act tax provisions. The federal tax penalty for violating the mandate was eliminated by the Tax Cuts and Jobs Act of 2017, starting in 2019..

The tanning tax is a ten percent federal excise tax that the U.S. government requires tanning providers to collect on indoor tanning services. Tanning service providers must pay the tax each quarter to the IRS. The ten percent tax must be collected from the client, according to the IRS, similar to the collection of a sales tax.

The following is a list of efforts to repeal the Affordable Care Act, which had been enacted by the 111th United States Congress on March 23, 2010.

American Health Care Act of 2017 Proposed U.S. law

The American Health Care Act of 2017 was a bill in the 115th United States Congress. The bill, which was passed by the United States House of Representatives but not by the United States Senate, would have partially repealed the Affordable Care Act (ACA).

References

  1. "Summary - H.R.2698 - Tanning Tax Repeal Act of 2015". Congress.gov. 9 June 2015. Retrieved 2017-02-22.
  2. 1 2 "Actions - H.R.2698 - Tanning Tax Repeal Act of 2015". Congress.gov. 9 June 2015. Retrieved 2017-02-22.
  3. "Cosponsors - H.R.2698 - Tanning Tax Repeal Act of 2015". Congress.gov. 9 June 2015. Retrieved 2017-02-21.
  4. 1 2 3 "ASA APPLAUDS CONGRESSIONAL REPEAL OF "TAN TAX"". American Suntanning Association. Retrieved 2017-02-21.
  5. "Excise Tax on Indoor Tanning Services Frequently Asked Questions". www.irs.gov. Retrieved 2017-02-21.
  6. Ellis, Ryan (2015-06-05). "Obamacare's Tanning Tax Turns Five". Forbes. Retrieved 2017-02-21.
  7. "Actions - H.R.3762 - To provide for reconciliation pursuant to section 2002 of the concurrent resolution on the budget for fiscal year 2016". Congress.gov. 2 February 2016. Retrieved 2017-02-21.