Reported as a proposed 10% cosmetic surgery tax by Democrats, it was met with a massive wave of publicity. A much smaller wave followed when it turned out that it was never really on the table, but a musing by a Treasury department official.
From Fox News' Speakers Lobby blog:
"OMB spokesman Ken Baer and White House Deputy Press Secretary Reid Cherlin tell Fox this idea actually came from a Treasury Dept official.
Either way, as I reported last night, it appears to be very much off the table. Most members of the Finance Cmte had not even heard of the idea.
Still, the proposal underlines the difficulty negotiators are having in coming up with a way to pay for $1 trillion in health care reform."
The possibility of it was pretty thoroughly debunked on Colin Stewarts' In Your Face blog.
“A number of states have tried to impose excise taxes on cosmetic surgery, with little success. The only state with such a law on the books is New Jersey. Democratic Gov. Jon Corzine vetoed a bill to repeal the state’s 6 percent tax on cosmetic surgery gross receipts in 2007, even after the repeal passed unanimously in both the state Assembly and Senate."
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