Well, well, well.
It appears that tanning salons either don’t know about their targeted ObamaCare tax or they aren’t complying with it or the added tax has dampened demand … and the IRS is having trouble tracking the salons down to figure out what’s going on.
So, the new federal tax on indoor tanning services isn’t bringing in as much revenue as promised.
The Treasury Inspector General for Tax Administration says the new federal tax on indoor tanning services isn’t bringing in as much revenue as hoped.
Tanning tax receipts for that nine-month period ending March 31, 2011 totaled $54.4 million, the report found.
That was below projections by the Congressional Joint Committee on Taxation, which had estimated the tax would raise $50 million per quarter.
The IRS had difficulty determining the actual number of tanning salons and the contact info for businesses required to collect the new tax from customers.
Using an April 2010 Indoor Tanning Association estimate, the IRS initially projected the tax would be due quarterly from roughly 25,000 stand-alone tanning salons, plus spas, health clubs and beauty parlors.
But the inspector general report found that actual tax returns filed for the first three quarters through March 31 averaged just above 10,300.
Source: USA Today
It’s a shocker, isn’t it ?
The Homa Files 