Mozilo and Healthcare Tan Tax to the Rescue?
Ideological trains came crashing together as the battle for comprehensive healthcare reform resulted in the whole enchilada approach of the Democrats winning over the baby-step approach advocated by the Republicans. Thank goodness there is a savior to remedy the hefty $940 billion costs of the national healthcare plan…Angelo Mozilo. Not only will this mortgage tycoon (former CEO of Countrywide – the largest U.S. mortgage lender at one time) have his fat-cat wallet to fund multiple new healthcare taxes on the wealthy, but the government will also be collecting a new 10% tanning tax on all Mr. Mozilo’s bronzing sessions. Perhaps the CBO (Congressional Budget Office) healthcare reform cost saving estimates ($138 billion in the first decade) may come in even better than anticipated?
20,000,000 Tanning Sessions to Health
The public shouldn’t shed a tear for the real estate pain Mr. Mozilo endured – he still managed to stash a nice pile of dough before the mortgage walls came tumbling down on him. Given Mr. Mozilo’s timely sale of about $300 million in Countrywide stock before the share price cratered, coupled with the $23.8 million retirement fund and roughly $21 million in deferred compensation (Minyanville.com), Mr. Mozilo should have enough money to cover about 20,000,000 tanning sessions by my calculation. That sounds like a rather large number, but I expect Mr. Mozilo will shrewdly negotiate a bulk discount for the sessions, even if the government disapproves of the asssociated lost tax revenues.
However, one major potential hurdle for Mozilo may be finding the adequate time for tanning. If the SEC (Securities and Exchange Commission) is successful in prosecuting him on the alleged securities fraud and insider trading charges, then he may need to petition for a tanning bed in the prison gym.
Unintended Beach-going Consequences
Although we all condemn the harmful side effects of skin cancer from sunbathing, let’s not completely dismiss some of the advantages, including the benefits of Vitamin D production. Other cited ailments benefitting from sunlight exposure include, eczema, arthritis, psoriasis, acne, season affective disorder, and depression. One of the worse afflictions suffered by beach-goers (male and female alike) is the tragic “pastiness” condition. One of the severe unintended consequences of President Obama’s tanning tax may indeed be the extreme ridicule unleashed on light skinned beach bums that are unable to afford the tanning tax (see photo below).
Toss the Drumstick
On a more serious note, I get the fact that the government wants to raise a substantial amount of money to cover an extensive healthcare bill like this one – either through taxes and/or cost cuts. However, I think there are other areas in the healthcare food chain that need to climb higher in the national debate. Although, I’m OK with the tanning tax, I strongly believe there is more fertile ground in attacking obesity (see article on the Economics and Consequences of Obesity) and other costlier areas of treatment. The amount of money spent on managing obesity, and associated ailments, trounces the expenditures directed towards cancer by more than $50 billion by some estimates. Dated data shows we are spending more than $100 billion dollars on obesity-related healthcare costs. One study estimates obesity costs in the United States will reach $344 billion by 2018.
Bolstering the severity of the condition, the CDC (Center of Disease Control) noted the following:
“More than one third of U.S. adults—more than 72 million people—and 16% of U.S. children are obese. Since 1980, obesity rates for adults have doubled and rates for children have tripled. Obesity rates among all groups in society—irrespective of age, sex, race, ethnicity, socioeconomic status, education level, or geographic region—have increased markedly.”
I realize the importance of a copper tone tan can have on the lives of millions of Americans, and I also recognize the tanning tax is just a small blip in the growing 2,200 healthcare bill signed into law. Nonetheless, the spotlight of the healthcare debate needs to focus on the highest cost silos (i.e., obesity). Otherwise, I’m not completely sure whether all of Angelo’s taxed tanning sessions will be enough to cover our country’s immense healthcare costs?
Related Article: Bill Maher Chearleads No Profit Healthcare
Wade W. Slome, CFA, CFP®
Plan. Invest. Prosper.
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