Senate Health Bill Includes 5% Tax On Cosmetic Surgery
By Martin Vaughan, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- A new 5% excise tax on nose jobs, breast
enlargements, and other optional cosmetic surgeries would help fund an overhaul
of the health-care system, under legislation from Senate Democrats unveiled
Wednesday.
The new cosmetic surgery tax would help raise about $5.8 billion over 10 years
to help offset the cost of the $849 billion bill from Senate Majority Leader
Harry Reid (D., Nev.). It is one of the few surprises among tax provisions in a
bill where many of the tax changes had been telegraphed in advance.
The tax would apply to "any cosmetic surgery and medical procedure" performed
after Jan. 1, 2010 under the Reid legislation.
As expected, Reid is proposing a 0.5% hike in the Medicare payroll tax for the
wealthy, defined as individuals making more than $200,000 per year or married
couples with annual income greater than $250,000.
That change raises $54 billion over 10 years, the congressional Joint
Committee on Taxation said Wednesday.
Reid cut in half a fee on medical devices from the version passed by the
Senate Finance Committee, reducing the fee to $2 billion annually.
Pharmaceutical companies face a $2.3 billion annual levy, and health insurers
would pay a total of $6.7 billion in annual fees.
New taxes in the Senate health overhaul bill total $370 billion over 10 years,
the JCT said. The remaining cost of the bill would be offset by savings in
existing federal spending programs.
-By Martin Vaughan, Dow Jones Newswires; 202-862-9244; martin.vaughan@
dowjones.com
(END) Dow Jones Newswires
11-18-092100ET
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