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Botox tax spared in U.S. healthcare fight - Business - Botox - tax - USA

Botox tax spared in U.S. healthcare fight

In the rush to fund a U.S. healthcare overhaul, Botox injections to smooth wrinkles will not be taxed, but visiting a tanning salon will be.

Lisa Richwine | Reuters | Published: 12/22/2009 06:40

Plastic surgeons and Botox maker Allergan Inc (AGN.N) successfully fought a proposed 5 percent tax on breast implants, face-lifts and other elective cosmetic procedures in Senate Democrats' healthcare legislation.

Senate Majority Leader Harry Reid dropped that plan, nicknamed the "Botax" after the popular wrinkle fighter, in changes released on Saturday. It was replaced it with a 10 percent tax on indoor tanning services.

California-based Allergan launched a major offensive against the Botax plan after it was included as a late addition to the Senate's healthcare reform bill in November.

Allergan Chief Executive David Pyott personally raised objections with lawmakers and the company launched a website and Facebook page to rally tax opponents. The website called the plan "a tax on self-improvement."

Plastic surgeons also lobbied heavily against the Botax. They argued the tax would unfairly hit middle-class, working women who make up a large portion of their patients, not just the wealthy.

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