Fitness Services Tax Penalizes Wellness
While businesses that produce products have always been taxed, service businesses typically are not because we are not selling a tangible item. However, the Council of the District of Columbia recently voted to apply a sales tax to gym and yoga studio services in Washington, D.C.
Dubbed “the yoga tax” in the media, the new law will go into effect January 1, 2015, applying a 5.75% rate to dues and services provided by the gym or yoga studio. They came up with this idea as a solution to decrease income tax and increase revenue.
As it turns out, 25 states in the U.S. currently have similar regulations already in place, according to IDEA Fitness Journal (September 2014). And this isn’t the first time the issue has come up, several other states, 12 to be exact, have proposed it since 2006, but without much success.
One problem, aside from the fact that the government is always trying to dig into the small business owner’s pocket, is the the majority of the population, roughly 80%, already doesn’t get the recommended 150 minutes of exercise each week. This would only add another barrier to meeting those exercise guidelines.
In addition, why just penalize wellness? What about the other service businesses out there? Where does it stop? Ultimately, doesn’t wellness and maintaining a good fitness level decrease the governments cost of health care? So why should the people that provide those services and help others be thanked by paying an additional tax?
This has been an edition of Optimum Philosophies, and if you enjoyed this, be sure to subscribe to my blog at Optimum Condition Blog Feed.
Melissa
OptimumCondition.com
(619) 252-4993
Empowering people through fitness, education, and coaching
