Grimm, Tiberi, Roe Introduce Bill to Eliminate Tan Tax


H.R. 2092 repeals Obamacare tax that hurts small businesses and job creation Endorsed by NFIB, ATU, and ATR

Today, Rep. Michael Grimm (R,C-NY) is joined by Ways and Means Select Revenue Measures Subcommittee Chairman Patrick Tiberi (R-OH), Rep. Phil Roe, M.D. (R-TN), and twenty-two other House Republican colleagues in introducing H.R. 2092, legislation to repeal the regressive 10% tax on tanning services. The tax was enacted as part of President Obama's healthcare reform in the Patient Protection and Affordable Care Act (PPACA).

"America's small businesses and hard-working middle class should not have to foot the bill for Obamacare," said Rep. Grimm. "The healthcare law unfairly imposes onerous taxes, like the tan tax, on our nation's business owners and consumers, slowing economic growth and costing jobs. I made a promise to repeal Obamacare, which is why I'm pleased to introduce legislation to repeal the tan tax and eliminate one more job-killing and economy-crushing provision in the healthcare law."

"The Democrats' health care law breaks President Obama's promise to not raise taxes on those making less than $200,000 a year. During a hearing in the Ways and Means Committee a member of the Administration even joked about this measure not being a tax," said Rep. Tiberi. "American small business owners, the drivers of our economy, don't think it's a laughing matter. This unfair punishment of small businesses and small businesses must be repealed."

"Placing a tax on a service to pay for a trillion dollar entitlement program is misguided policy," said Rep. Roe. "This tax is another example of how bad the health care law actually is and why it should be repealed. No one should face another tax increase in this economic climate."

This new 10% tax on tanning services could hit an estimated 18,000 small businesses, which employ 120,000 people nationwide. In fact, the recession paired with the tax has already taken a toll on industry, resulting in business closings and lost jobs. Since 2009, more than 3,100 businesses representing 15% of the industry have closed nationwide resulting in approximately 24,000 lost jobs in the private sector.

While supporters of the government take-over of health care lash out on a campaign to tax "millionaires and billionaires," the tanning tax clearly effects small businesses and hardworking taxpayers from all income levels and has the greatest impact on the middle class.

Overall, the tan tax is one of many small business taxes jeopardizing the economic recovery of our nation's job creators. In fact, according to a study performed by the National Federation of Independent Business, the employer mandate in the PPACA could eliminate 1.6 million jobs by 2014. Of these 1.6 million jobs lost, 66% of them will come from small businesses. This bill seeks to correct one the provisions hurting America's small businesses, removing one of the many barriers to job creation imposed by PPACA.

Other original cosponsors of H.R. 2092 include Reps. Todd Young, Frank Guinta, Steve Stivers, Tim Walberg, Thaddeus McCotter, Marlin Stutzman, Marsha Blackburn, Brett Guthrie, Jason Chaffetz, Lynn Westmoreland, Tim Huelskamp, Richard Hanna, Kevin Yoder, Mike Pompeo, Lynn Jenkins, Bill Huizenga, Lee Terry, Sam Graves, Rick Crawford, Jeff Denham, and Reid Ribble.