Hair Restoration Blog

Previously, we posted an article in our hair restoration blog: Tax on Cosmetic Procedures. For our readers, the good news  is that there were many people who supported us in our rally against the cosmetic tax proposal. Even more good news: the current cosmetic tax proposal has been dropped (hooray!). It was the same proposal that was part of the massive health care reform bill presently being considered on the Senate floor.

But let’s keep in mind that it is quite possible the “Bo-tax” could be tacked back on before the bill’s final passage.

I say the five percent tax is insane because a very similar type of cosmetic tax has been implemented in New Jersey, with disastrous results. Tax revenues from plastic surgeons and cosmetic doctors have dipped in that state, probably because potential patients are going to doctors in surrounding states for their cosmetic surgery needs, while not having to pay as much.

In this case, we may deter those people who visit the United States every year from coming to America in order to take advantage of our top-of-the-line cosmetic procedures.

The additional tax on cosmetic procedures has lowered business profits for doctors, thus limiting the amount of tax revenue the state of New Jersey receives to pour into public institutions and not-for-profit organizations. It seems to be a no-win situation for everyday citizens, doctors, and state assemblymen and politicians who are sincerely trying to do good service for the people of their district.

Another drawback: the tax may be applicable to a broad-range of procedures that improve a person’s self-image and self-confidence. These procedures may very well end up improving a person’s depression or social anxiety, as described in our article, Psychology of Hair Transplants.

Lastly, the cosmetic surgery levy unfairly discriminates against people with congenital defects, such as bald people who are looking for a hair transplant or women seeking to rid themselves of wrinkles by using Dysport or Radiesse.

Data sources show that about 90 percent of people who are considering cosmetic-type treatment are women (source: American Society of Plastic Surgeons). These women are seeking to enhance their self-perception and to feel more comfortable in social settings and also looking to gain an edge in the workforce (studies show chances are better for more “attractive” people to get hired, to receive promotions, or to receive a higher salary).

I would like to take this time to thank all physicians, patients, and politicians who supported the drop of this proposal from the health care reform bill.

Recently, the Senate proposed a health legislation which includes a 5% tax on cosmetic procedures. The cosmetic surgeries include hair restoration procedures and many other surgeries for men and women.

The potential 5% tax on cosmetic surgeries is a no-win situation for American citizens and potential hair transplant patients. By levying a tax on cosmetic procedures throughout the United States, it may further cripple our stumbling economy and reduce the much-needed funding states receive from cosmetic surgeons in order to build, for example, a high-speed train in California, create more innovative after-school programs for teenagers, poverty intervention programs for inner-city residents, more efficient forms of public transportation (e.g. metro rails).

But, at the heart of the issue, I believe, is the obstruction of an American citizen’s right to the pursuit of happiness. Through an orthodontist, people have the right to get their teeth straightened out; by undergoing a vasectomy, a married couple no longer has to deal with an unwanted pregnancy; through the purchase of an electric hybrid Honda Civic, a motorist can fight sky-rocketing gas prices.

The government doesn’t tax citizens for making these types of decisions. People do them because they believe these things will improve their lives. But why impose a tax only on cosmetic surgeries? Where do we draw the line? Who can be the judge of whether a hair transplant is a luxury for a 25-year-old man who started to lose hair and looked less attractive, which led him to struggle with social anxiety and feel depressed a lot of the time?

I believe this young person ought to be given the same opportunities as the other non-bald peers in his life, especially when we are talking about dating, relationships, and employment prospects in this increasingly-competitive time. Who knows, if this legislation passes, maybe in the near future, people who wear contacts will be taxed an additional 5%.

At US Hair Restoration, we perform hair transplants for lots of patients who travel from other countries, such as Canada, Europe, and the Middle East. Many of these patients visit the United States because they want, for their cosmetic surgeries, to be exposed to the most modern techniques; but many of them may consider the cost of cosmetic procedures, too. Increasing costs for these surgeries may deprive us from a potential source of income and deprive them of potential patients.

Currently, some states impose a tax on cosmetic procedures. According to doctors who work in these states, the results haven’t been pretty. The plan has fallen 59% short of its projected revenue; it’s proven to be an administrative pain-in-the-behind, and it was forcing many prospective clients to obtain cosmetic surgery services in surrounding states, resulting in reduced tax revenue collected from plastic surgeons from cosmetic-tax-imposing states.

For myself, as the medical director of US Hair Restoration, I’m against this legislation for the simple fact that people ought to have the freedom to do what they think will make them happy–without imposing additional costs on them. Our motto at US Hair Restoration has always been: “quality hair transplants for everyone.” Some of my patients have told me that they have lost a lot of life opportunities because of their baldness. Why not allow these wonderful people to get back what they deserve: their hair.

Let’s be fair to all people. After all, we live in the land of liberty.

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Parsa Mohebi, MD
US Hair Restoration