Tanning franchisees oppose new tax

Posted on July 28, 2010 by Franchise Gator Admin

While many health advocates hailed the passage of the "tanning tax", other were not so enthused.

The 10-percent tax on tanning services will raise approximately $2.7 billion for the government over the next ten years. However, some within the industry say that the tax unfairly targets tanning franchisees.

According to the Indoor Tanning Association's president, Dan Humiston, the tax will hurt those who cannot afford to lose income.

"I hardly think this is the appropriate time to raise taxes on our nation’s smallest businesses, the very people who can least afford new and complicated taxes,” said Humiston in an interview with LookingFit.com. “This directly violates the promise President Obama made not to raise taxes on the middle class. A tax like this could be devastating to thousands of ‘mom and pop’ tanning businesses across the country."

The indoor tanning industry is home to an estimated 18,000 small business owners, and many are fearing the added fees and paperwork associated with the new tax.

The government and franchisees often find themselves at odds when it comes to imposing taxes. While the government works to protect citizens, many business owners feel that it will force them to layoff loyal workers.