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Cosmetic surgery tax could help pay for public schools

Ambulatory Surgery Reimbursement Update, March 22, 2005

Texas has joined the growing list of states considering a "vanity tax" on plastic surgery, according to the Associated Press (AP).

The Texas House of Representatives passed the 7.5% tax on elective cosmetic procedures, which include breast surgery, facelifts, and nose jobs. The tax still needs the state Senate's approval.

It is estimated that money from the tax could bring in an estimated $37 million, and could help the state change the way it pays for public schools.

"There's no particular reason these services shouldn't be taxed, when other things that people purchase to improve their looks are," said Rep. Scott Hochberg, the Houston Democrat who introduced the bill. "It clearly is not a necessity."

Two other states, Illinois and Washington, are also considering the tax. The Washington senator proposing the tax wants the money to go to poor children's health insurance, according to the Holland Sentinel. Money from the proposed Illinois tax could fund a stem cell research institute.

New Jersey is the only state with a vanity tax already in place. The tax is expected to bring in $25 million this year.

To read the story from the AP as posted on the Houston Chronicle's Web site, click here.

To view the "American Society of Plastic Surgeon's Position Statement on Cosmetic Surgery and other Physician Taxes," click here.

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