NY Gym Tax???
Arguing that a good workout in at the gym can be taxing enough, the governor’s plan to raise taxes on health clubs is gaining some strong opposition from the fitness industry and enthusiasts throughout the state. NY1’s Health and Fitness reporter Kafi Drexel filed the following report.
Governor David Paterson has proposed to boost the sales tax on health club fees and services four percent to raise more money to fix New York’s ailing economy. Yet many gym members would be feeling the burn in their wallets.
"I think it is ridiculous. I think you should tax fat food and tax pollution, something that is more negative," says gym member Susan Cappozzoli.
"If anything, they should be subsidizing gym memberships and decreasing gym memberships so you could encourage people to go to the gym and avoid obesity and other health issues,? says gym member Joel Feliciano.
Analysts from the International Health, Racquet and Sportsclub Association say an additional tax would be just yet another financial hurdle for new fitness club memberships, which have already decreased in some areas because of the economy.
The fitness industry is also reacting by lobbying against the tax in Albany. Clubs like Equinox have been emailing members on-line, encouraging them to ask lawmakers to block the tax.
"We think the tax is just a big disconnect from Governor Paterson’s direct state policy of promoting a healthy lifestyle," says Equinox chief operating officer Scott Rosen.
Paterson previously said he would tax sugary sodas to help fight obesity, but some wonder whether taxing gym memberships will undo his health advocacy.
"New York State spent $1.6 billion last year for health care costs for obesity. To have this tax discourages maintaining a well-balanced diet and health and fitness," says Senior Vice President David Kastin of Town Sports International. "I would double up the tax on sodas and leave fitness clubs alone."
State health officials are defending the tax proposal, which is still subject to approval by the State Legislature.
"The tax on health club memberships is something we’re doing to raise revenue. There’s plenty of other ways as [State Health Commissioner Richard] Daines said, that folks can get out and exercise, particularly children," says State Deputy Health & Human Services Secretary Joe Baker.
Rosen says that argument leaves a lot out of the equation.
"Many of our members can’t do it on their own," he says. "They need our energy or our space, or our equipment or our staff and our trainers, our group fitness programs. So it’s not just about, ‘Where do I exercise?’"
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Discussion here: http://forum.bodybuilding.com/showthread.php?t=114069101
February 10, 2009 at 2:14 pm
If anything, gym memberships should be tax deductable since individuals who take the time and effort to take care of themselves physically are less likely to be a burden to the health care system later in life. Besides, the NY governor should know better than to be raising taxes when he should be encouraging spending to get the economy going again.
February 10, 2009 at 2:23 pm
Democrates equal higher taxes. Why don’t people get that. It’s fine if your not in a recession and you like having more than half of your hard earned money taken away
February 10, 2009 at 2:23 pm
new york is tax crazy. thats what is killing our economy. TEXAS HAS LOW TAXES, NO STATE TAX, LOOSE BUSINESS REGS. THAT IS WHY THE BAD ECONOMY DOESN’T EFFECT US MUCH. LIVED IN NEW JERSEY FOR AWHILE AND COULD NOT BELIEVE ALL THE TAXES. YOU CAN MAKE 5 - 10 DOLLARS LESS AN HOUR AND LIVE BETTER IN TEXAS.
February 10, 2009 at 2:35 pm
The issue is will people take and stand and aggressively call this, bullshit and say no there will not be a 4% tax increase on gym memberships. This is a private business serving it’s customers legally w/o "your added taxation and interference Governor"! If you can’t run the government w/ what you have, it’s time for less government. Don’t come around digging in the pockets of others, scoundrel.
People need to stop living individualized little lives and be community orientated for every individuals benefit. Letting self-serving people like this screw everybody every way they can is a mistake. People need to fight. Taxes are not the answer. Taxes are an easy an proven way to get the money out of the working people.
February 10, 2009 at 6:16 pm
I actually don’t have issue with taxation in general; we need to fund our public utilities (roads, fire dept, garbage, etc) but my problem is the choice of taxation sourcing. I find it unwise to tax something healthy. If anything, raise taxes on cigarettes and alcohol.
February 11, 2009 at 9:06 am
I have no problem with taxation when it makes sense but when there is all this waste and corruption I can’t stand it. The problem isn’t the tax source because the government will tax everything they can. The issue is they shouldn’t need more than 50 percent of our hard earned money (even more with sales tax, capital gains tax, etc) for public utilities and protection (law making, the military, police, etc.). At this point taxes far exceed the ACTUAL cost of running the country.