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Let’s Talk Fuller Lips, Larger Breasts, Slimmer Thighs, and H.R. 3590 (Patient Protection and Affordable Care Act.)

By Stacie Clifford Kitts, CPA

I really don’t have anything against women or men for that matter, who want to make some appearance enhancements.

However, as it turns out, some politicians do.

Here is the reality, “average” folk seek out and pay for cosmetic surgery. The reasons why are probably as varied as the numerous cosmetic procedures available to anyone willing to go there. I suppose if you are interested enough, you can get a comprehensive list of reasons from your local therapist.

Nevertheless, I think you will be surprised to learn that you probably know someone who has gone under the knife. Frankly, I don’t know many women (over 35) who haven’t had something done, even if it’s just a little Botox around the eyes or the permanent removal of some unwanted hair.

However, regardless of a person’s reasons, vanity it seems, is something our lawmakers believe should be discouraged and even punished.

The Patient Protection and Affordable Care Act now in the Senate has declared VANITY as the eighth deadly sin punishable by the imposition of a 5% excise tax. The bill, now in its fourth draft was originally introduced in the House as the Service Members Home Ownership Tax Act of 2009 by a myriad of politicians. You can check out the first draft, which includes a list of those politicians here.

The bill, which apprises to seek affordable healthcare also imposes an additional tax on those people wishing to improve their appearance or self esteem via cosmetic surgery.

Of course, the current draft has some fairness weaved in for those needing reconstructive or corrective procedures. Here’s a taste of what we get:

    `(a) In General- There is hereby imposed on any cosmetic surgery and medical procedure a tax equal to 5 percent of the amount paid for such procedure (determined without regard to this section), whether paid by insurance or otherwise.
    `(b) Cosmetic Surgery and Medical Procedure- For purposes of this section, the term `cosmetic surgery and medical procedure’ means any cosmetic surgery (as defined in section 213(d)(9)(B)) or other similar procedure which–
    `(1) is performed by a licensed medical professional, and
    `(2) is not necessary to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or disfiguring disease.

As a CPA and advisor, my first thought on the subject is just this, if after you have maxed out your retirement contributions, saved for a rainy day (at least 6 month salary set aside), figured out how you are going to meet your children’s needs including college, purchased adequate medical insurance, considered life insurance and other retirement arrangements, then it might be okay to check out a cosmetic enhancement – if that’s your thing.

Now assuming your procedure of choice is elective, let’s look at the tax cost under the provisions of the proposed “vanity tax.” Let’s assume that your choice is a new rack, which will cost you $10,000. The 5% tax on your new boobs would be an additional $500. Now from a realistic standpoint, and in my humble opinion, if you can’t scrape together an additional $500, then frankly you probably can’t afford the boobs and shouldn’t be getting them anyway.

But really – let’s put the “who can afford it” stuff aside and delve in. This provision actually falls under the WTF category – don’t you think?

I can’t say that I am totally opposed to taxing behavior. That is, I agree with sin taxes. Taxes on cigarettes and alcohol for instance do provide a certain amount of good since these products have been shown to cause harm to the public welfare. Likewise, the cost of treating people who have made themselves sick by indulging in unhealthy activities or behaviors must be considered – I get that – and if a tax on so called unhealthy products helps to relieve the public burden, then so be it.

But is cosmetic surgery really sinful? Personally, I fail to see how it is. Maybe our lawmakers can explain to me how slimmer hips, larger breasts, or plumper lips harms the public welfare or places a financial burden on the government.

But what is even more perplexing is just how or why cosmetic surgery won the tax lottery. I fear that this type of legislation opens the door for a whole litany of WTF taxes. I mean why not tack on an additional tax for hair coloring, nail salons, or makeup. These are also vanity products. Frankly where does it stop?

I am all for affordable health care, balancing the budget, and reducing debt. But come on lawmakers, I find it hard to believe that you can’t do better.

If you are interested in perusing the entire bill, you can find it here.

Related posts:

An Interesting Rewrite for the Vanity Tax H.R. 3590 Looks As if Congress Found a Vanity Product with Enough Sin to Justify a Tax

Vanity Tax = Tax the Other Guy Legislation HR 3590

Babbling Incisively on About Fuller Lips, Larger Breasts, Slimmer Thighs and H.R.3590

Still Talking About Fuller Lips, Larger Breasts, Slimmer Thighs, And H.R. 3590

Let’s Talk Fuller Lips, Larger Breasts, Slimmer Thighs, and H.R. 3590 (Patient Protection and Affordable Care Act.)

A Small Town, A Deep Dish Pie, and Diabolical Townsfolk – A Post From Stacie’s More Tax Tips

By Stacie Clifford Kitts, CPA

Well, here is an epiphany – small town ‘don’t’ mean stupid…Not that I actually thought that small towns harbored unintelligent people. It’s just that sometimes a small town feels so sweet and quaint it’s easy to assume that everyone in it must be sweet and quaint too.
You must know what I mean – picture the historical buildings, the lace curtains and the wooden board walks – all of which give off an air of – well – unsophisticated, honest, hardworking, townsfolk.
Now as it happens, there are many such towns along US highway 395 just south of Lake Tahoe as you travel through the valley headed toward the desert. The elevation along that stretch of 395 provides for plenty of snow during the winter and lush green farmland in the summer. It really is a magnificent and beautiful drive. The way is also littered with quintessential postcard worthy small towns.

This was exactly what I was observing when I saw the sign that sucked me in. We were driving slowly, very slowly as the speed limit was reduced to 35 mph through this particular town. And as I admired the homey almost soothing atmosphere, I spotted a sign in a cafe window framed in delicate lace curtains.

HOMEMADE DEEP DISH PIE $4.99

“Oh honey,” I said as I turned toward my husband clapping my hands and bouncing slightly in my seat. “Wouldn’t it be fun to stop in for some homemade pie? Can we?”

“Of course,” he said and he immediate pulled over to search for a parking spot.

And you know what?

I wasn’t disappointed by the looks of the café at all. Nope – the decor was exactly how I had pictured it would be. The occasional black and white photos of days long past were hung over aging flowered wallpaper. There was a lunch counter with red stools along the back wall and wooden tables with miss-matched chairs filling the space between. Each table had a small vase holding a single daisy. It really had the perfect small town feel.

And even though I couldn’t see into the kitchen, I knew who was back there. Yes of course – who else could it be but a sweet elderly grandmother lovingly baking her famous pie, her grey hair pulled tightly back in a bun, her flour smudged apron covering her 1950’s style dress. Sigh – I couldn’t wait for my small town – homemade – deep dish – pie experience.

We headed toward the back and sat at the lunch counter where we found the menu tucked between the condiments. I quickly buried my nose among the greasy pages and tried to decide what type of pie sounded good, cherry, apple, peach, strawberry. I didn’t notice the waitress until she asked, “What can I get you?”

“I think I will have a piece of cherry….,” I began as I glanced up into the face of a young woman who had several facial piercings and hair colored a very unnatural shade of red.” …Pie,” I finished.

Okay, so fine, the waitress didn’t really fit my small town fantasy. But that didn’t mean that my homemade pie wasn’t at that very moment being placed on some dainty flowered china by the grandmother in the kitchen. Right – the sign said HOMEMADE DEEP DISH PIE you know- I mean – there were lace curtains tied back with bows for heaven’s sake.

But when a young man in a dirty apron place in front of me a small white bowl with a spoon protruding from the side, I tried to explain. “No I ordered the homemade – deep – dish – pie.”

“Ya, cherry, this is it.” He said as he moved away. And as I stared into the bowl unable to move, all I could think was, where’s the pie lovingly made by the little grandmother in the kitchen?

And as my husband began to giggle, I realized the horrible truth. I had just paid $4.99 for a bowl of -of – canned pie filling?

That’s right – my homemade deep dish pie was a bowl full of canned cherry pie filling – I was completely mortified.

But not the hubby. He wasn’t mortified at all. In fact, he thought it was funny. Worse, he actually thought it was brilliant.

“Brilliant? Brilliant?” I stammered once I could speak. “What do you mean? I will never come back here again, this is terrible. It’s a bowl of pie filling for crying out loud.”

“What difference does it make?” He asked. “The locals know not to order the ‘homemade’ pie. Think about all the people who blow through here on their way to some place else. Heck most people wouldn’t even slow down if they didn’t have too. The sign in the window got us to come in and buy something. They’re not worried about repeat business from the tourists. When you think about it, it’s a brilliant marketing strategy. After tax, they probably made like a 400% profit off that bowl of pie filling. Why spend the money on actual pie?”

Why spend the money? Why? I was so disappointed that I wasn’t going to get my homemade deep-dish pie.

But even though disillusioned, I had to admit, it was true. If not for the sign, we would never have stopped. I glanced around the room wondering how many people had been lured in by the promise of pie only to be disappointed. And then it occurred to me, how many patrons might actually be locals slyly watching from the corner of their eye – a sad and slightly twisted form of local entertainment. Who knows, maybe a few. I mean come on, a bowl of pie filling has to piss off a least a few tourists.

But even so, I have no doubt that tucked away in some little back office is our grandma and her old accountant complete with a hand cranked adding machine bending steadily over a desk feverishly scribbling the results of some brilliant yet simple tax strategy which allows these diabolical townsfolk a way to keep all those profits from their homemade deep dish pie.