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'Tan tax' hits industry when it's down

WASHINGTON, July 8 (UPI) -- The new federal tax on indoor tanning, a part of the U.S. healthcare reform law, has hit the business at a low point, the owner of Solar Planet said.

Scott Shortnacy, owner of the 21-branch indoor tanning business based in the Washington area, said sales "are down 20 to 30 percent" because of the recession, The Washington Post reported Thursday.

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Indoor tanning now comes with a 10 percent surcharge that went into effect a week ago, compliments of the healthcare reform bill.

The reasoning among Democrats and dermatologists was that the $2.7 billion-per-year surcharge would offset costs for skin cancer treatments -- three times more likely to be needed by those who frequent indoor tanning salons.

Customers had split opinions.

"I understand that the money needs to come from somewhere. But this doesn't seem like the appropriate place. It's just silly," said Dane Ellington, a healthcare consultant and frequent tanner.

"I know I shouldn't be tanning, but I do it because it makes me feel better. So I guess I understand the idea behind the tax, and I'm willing to pay it," said another customer, Karie Apicella.

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