That revenue might not be spent elsewhere in a way that recreates the jobs lost or the businesses shut though, which could lead to an diminishment of taxable income. Maybe they save the money, maybe they go out to eat a little more (until we get an excise tax on that too), etc. That would probably shift a little more money to current businesses, but again, probably not enough to create the new jobs to offset the ones lost.
Also, if they are no longer spending in the tanning salons, but in other places that don’t have the fed. excise tax, then yes, there is directly a loss of federal tax revenue from that tax, in addition to the added burdens placed on the unemployment offices, etc., which also adversley affects the federal (and local) budgets.
It’s not the worst excise tax going, but it is a good example of how it’s possible to kill small businesses on a whim while justifying it with a flimsy excuse of ‘looking out for the greater good’. I’d really have liked to have seen some real work on the budget and the programs that are in existence already before they started looking for ways to nickle and dime their way out of an awful deficit. Where was the line-by-line examination of the budget? The commitees on waste and fraud for medicare? The review of Social Security? The refunding of both by stopping Congress from raiding their funds to push other programs? Both parties are guilty of not doing this, but President Obama campaigned, and continues to speak, as if he is different and made of sterner, smarter material and able to be the leader to get the Congress to tackle the big problems and budget issues and come up with solutions. I didn’t believe it then, and I don’t see it happening now, or ever with this adminstration and congressional leadership.
