4/02/2012

New York taxing both unhealthy and healthy activities

Well, if the government is going to put a heavy tax on healthy activities, this must justify them putting a really heavy tax on unhealthy ones.  From the WSJ:


The New York Department of Taxation and Finance decided that yoga studios fall into a category of businesses -- specifically weight control or health salons -- that must pay the city's levy, officials said.
The decision was revealed last April in a bulletin from the department and now is sinking in as yoga studios across the city prepare their taxes.
The state -- which collects the city's sales tax -- already began auditing yoga studios, presenting them in some cases with bills for back sales taxes for the past three years.
"We do see this as a fairness issue," according to Edward Walsh, a spokesman for the Department of Taxation and Finance, noting that Pilates studios have to pay sales tax. "Businesses that provide similar services should be subject to the same taxes in the city." . . .

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