Over the weekend, U.S. Senate Democrats removed a proposed 5% tax on all elective cosmetic surgery, replacing it with a last-minute provision that would tax the use of tanning beds. Senate Democrats cite the reasoning for the “Tan Tax” is the increased risk of skin cancer associated with the use of indoor tanning beds.
Under the new proposal, individuals purchasing tanning services would be requires to pay the 10% Tan Tax. Over a 10-year span, this new tax is projected to produce $2.7 billion to help fund health care reform. The previously proposed elective cosmetic surgery tax, affectionately called the “Bo-Tax” was projected to contribute over twice that amount in the same 10-year span.
Allergan, the California-based maker of Botox and other firms that were to be affected by the “Bo-Tax” lobbied together to remove the proposed tax. Representative cosmetic surgeons also lobbied against the tax arguing that the tax was discriminatory, specifically against middle-class women.
In a statement released by John Overstreet, executive director of the Indoor Tanning Association said, "It is not surprising that one primarily cosmetic business is trying to throw another under the bus by transferring a tax from rich doctors and their wealthy customers to struggling small businesses," Overstreet said. "The irony is that ultraviolet light at least has proven health benefits where botox treatments have none."
On their website, the Indoor Tanning Association states that a well-known side effect of exposing the skin to ultraviolent (UV) light is the production of Vitamin D.
What is the Section 179 Deduction??
Most people think the Section 179 Deduction is some arcane or complicated tax code. It really isn't, as the following will show you.
Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the US Government to encourage businesses to buy equipment and invest in themselves. It is sometimes referred to as the "SUV Tax Loophole" or the "Hummer Deduction" because many businesses have used this tax code to purchase qualifying vehicles (like SUV's and Hummers.)
Essentially, Section 179 works like this:
When your business buys certain pieces of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a vehicle, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example.)
Now, while it's true that this is better than no write off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.
In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting. That's the whole purpose behind Section 179. See the following graphic for an example of the savings that are available to you.
Limits of Section 179
Section 179 does come with limits - there are caps to the total amount written off ($250,000 in 2009), and limits to the total amount of the equipment purchased ($800,000 in 2009.) The deduction begins to phase out dollar for dollar after 800k, so this makes it a true small and medium-sized business deduction.
However, in 2009, businesses that exceed the $250k deduction limit can take a bonus depreciation of 50% on the amount that exceeds the limit. And then also take normal depreciation on the rest. Nice.
Who Qualifies for Section 179?
All businesses that purchase or finance less than $800,000 in business equipment should qualify for the Section 179 Deduction. In addition, most tangible goods qualify for the Section 179 Deduction (see list of qualifying equipment). Also, to qualify for the Section 179 Deduction, the equipment purchased must be placed into service between January 1, 2009 and December 31, 2009.
The deduction begins to phase out if more than $800,000 of equipment is purchased - in fact, the deduction decreases on a dollar for dollar scale after that, making Section 179 a deduction specifically for small and medium-sized businesses.
Neither ETS, LLC nor its parent or affiliated companies operate or control, in any respect, any information, claims, representations, endorsements, recommendations, testimonials, products or services that third parties may provide on or through the website or on websites linked to by us. The inclusion of any link on this website does not, and shall not be construed, to imply any recommendation, approval, endorsement or testimonial of that third-party website by ETS, LLC. The views and opinions of authors expressed in any third-party website do not necessarily state or reflect those of ETS, LLC. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply endorsement, recommendation, or favoring by ETS, LLC.
NXT plc, a provider of unique sound solutions, best known for its flat panel loudspeaker technology, is pleased to confirm the launch of a new series of state of the art NXT-equipped tanning beds from ETS, featuring the revolutionary E3 technology – energy saving, ergonomic design, and easy maintenance.
The use of NXT technology in ETS’ new E3 tanning beds is a testimony to the wide ranging application of NXT’s award-winning technologies. NXT speakers are built into the canopy, transforming it to a loudspeaker and providing a surround sound user experience while reducing the noise pollution throughout the tanning salon. Compatible with MP3, DMX, or other sound sources, the built-in NXT speakers also eliminate the need for costly and bulky sound systems, allowing for a more spacious environment. A keypad remote control is located just in front of the bed for easy access to the multiple functions of the beds, which are also equipped with illuminating ‘mood mode’ light effects that change colors and can be customized to fit the salon theme or personal preferences.
E3 tanning bed featuring built-in NXT speakers
Easy to maintain, the compact tanning beds feature wipe-clean panels, promoting a hygienic environment within the tanning bed. NXT has granted ETS Tan exclusive access to its technology and intellectual property for the tanning bed market and the E3 series product range is now available in the US, priced from $7,999.
For further information, please contact:
James Bullen
Head of Marketing
NXT plc
t: +852 6821 1651
About NXT
NXT’s commitment to inventiveness in sound and touch has enabled it to deliver new technologies already deployed in audio systems, TVs, PCs and laptops, mobile phones, PA systems, cars, aircraft and in public buildings and facilities around the world. With its unique portfolio of patented technologies and unparalleled expertise in the field of bending wave physics, NXT helps its partners invent, create and market innovative sound solutions that offer sustainable differentiation.
NXT is fully listed on the London Stock Exchange (symbol NTX) and has operations in Hong Kong, Japan and the USA as well as the UK. Further information is available from www.nxtsound.com.
About ETS
Born on a small Indiana farm and grown into an industry leader with international reach, ETS Tan this year reaches perhaps its most significant milestone ever.
ETS Tan celebrates 25 years of providing superior indoor tanning beds, tanning equipment and supplies, unmatched customer support and an unwavering commitment to consumers who use its products and tanning salon owners who decide to offer ETS equipment to their clients.
The humble beginnings of the world’s largest manufacturer of tanning beds, tanning equipment and supplies is interesting.
Indoor tanning was a rather new and unchartered industry when Trevor and Edna Gray were exploring new business opportunities back in 1984. From their small Indiana farm, the Grays incorporated European Tanning Systems Inc. and became a distributor of what were then called sun beds and related tanning products. What made the couple successful was their clear focus on providing highly personalised service to clients. Their business quickly grew to the point that the Grays needed to hire a staff and spread their wings from existing as a regional distributor of tanning beds to a national one.
After just four years in business, ETS relocated from its rural roots to a business park in Indianapolis where its main distribution center employed 80. Regional sales and distribution facilities were soon opened in Florida and California. Explosive growth in another four years of time then prompted another physical move for ETS to an 88,000-square-foot office and warehouse facility. Quickly, another 76,000 square feet of operating space was added and ETS joined sister companies Australian Gold, Swedish Beauty and Helios under one roof. An 8,000-square-foot showroom displayed ETS’s complete tanning bed line and products produced by its sister companies and offices housed ETS’s sales, customer service and support personnel.
Today, ETS Tan is headquartered on the south side of Indianapolis in a massive 365,000 square-foot warehouse and distribution center ideally located off Interstate 65 and just 15 minutes from the new Indianapolis International Airport, a convenience for prospective tanning salon owners considering ETS as their preferred tanning equipment supplier. A 5,000-square-foot showroom overlooks the factory’s assembly lines. ETS also has its own tanning salon, offering customers the opportunity to try the tanning equipment during their visit. Australian Gold and Helios are located in a separate business park on the city’s westside.
ETS is under the umbrella of New Sunshine LLC, which acquired lotion companies California Tan and Designer Skin and is without a doubt the single-largest force in the international tanning industry.
Neither ETS, LLC nor its parent or affiliated companies operate or control, in any respect, any information, claims, representations, endorsements, recommendations, testimonials, products or services that third parties may provide on or through the website or on websites linked to by us. The inclusion of any link on this website does not, and shall not be construed, to imply any recommendation, approval, endorsement or testimonial of that third-party website by ETS, LLC. The views and opinions of authors expressed in any third-party website do not necessarily state or reflect those of ETS, LLC. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply endorsement, recommendation, or favoring by ETS, LLC.
Nine new alluring, body-contouring and eco-friendly tanning beds make up a new line of commercial tanning beds that begin shipping soon from tanning equipment leader ETS Tan.
The e3(TM) line of tanning beds feature the latest in energy-saving science, ergonomic design principles and eco-friendly lamp configurations. The line includes four beds in the Ultimate Envy collection, two Epic beds and two Legend beds.
"Our new tanning beds feature the latest in energy-saving science, ergonomic design principles and eco-friendly lamp configurations," said ETS Tan CEO Bill Pipp. "I'm excited that after two years of development and testing this day is here. We're eager to see these sleek, energy-efficient tanning beds inside salons throughout the nation."
e3 tanning beds feature illuminated panels that change color and add movement, energy and ambiance to any salon. An easy-to-use control panel that includes a timer display for clear understanding of bed operations and optional voice prompts is directly in front of tanners on each bed's canopy handle. e3 beds have an integrated sound system compatible with MP3 players.
Each e3 tanning bed features electronic ballasts that reduce energy consumption and can lower a salon's operating costs by up to 30 percent. e3 beds operate at cooler temperatures, allowing salons to scale back air conditioning in the summer months, and use Wolff® System lamps that contain less mercury, making them more easily disposable than non-green lamps.
ETS Tan also upgraded its popular Rejuvasun with Omnilux spa bed with e3 technology. The Rejuvasun with Omnilux is the only tanning and skin rejuvenation bed in the marketplace that offers FDA-cleared, medically proven light therapy panels that can reduce fine lines and wrinkles in the face and neck areas by up to 75 percent.
"We kept the investment that salons make when they choose ETS tanning beds at the forefront of our design plans," Pipp said. "e3 beds are higher output beds that require less space and feature smart access panels that allow easy access to all internal components without removing any bulky covers. All beds feature impact-resistant covers that look great and will stand the test of time."
For more about the new e3 line of tanning beds from ETS Tan, visit etstan.com or the company's Facebook Fan Page.
Over the weekend, U.S. Senate Democrats removed a proposed 5% tax on all elective cosmetic surgery, replacing it with a last-minute provision that would tax the use of tanning beds. Senate Democrats cite the reasoning for the “Tan Tax” is the increased risk of skin cancer associated with the use of indoor tanning beds.
Under the new proposal, individuals purchasing tanning services would be requires to pay the 10% Tan Tax. Over a 10-year span, this new tax is projected to produce $2.7 billion to help fund health care reform. The previously proposed elective cosmetic surgery tax, affectionately called the “Bo-Tax” was projected to contribute over twice that amount in the same 10-year span.
NXT plc, a provider of unique sound solutions, best known for its flat panel loudspeaker technology, is pleased to confirm the launch of a new series of state of the art NXT-equipped tanning beds from ETS, featuring the revolutionary E3 technology – energy saving, ergonomic design, and easy maintenance.
Nine new alluring, body-contouring and eco-friendly tanning beds make up a new line of commercial tanning beds that begin shipping soon from tanning equipment leader ETS Tan.
