IRVINE, Calif., Dec. 9 -- A majority of Americans oppose the inclusion of a five percent tax on cosmetic medical procedures, according to a survey released today. Survey respondents oppose the so-called "bo-tax" by a 52% - 43% margin.
The survey was conducted by Opinion Research Corp., December 3 - December 6, 2009. The survey was commissioned by www.stopcosmetictax.org, a project of Allergan, Inc.
According to the survey, a large majority of respondents, by a 64% - 34% margin, agree that the cosmetic medical procedures tax has no place in health care reform, since these procedures and treatments are not covered by health insurance and the tax will disproportionately impact middle class women.
"These results demonstrate that Americans oppose a new tax on cosmetic medical procedures," said David Pyott, Chairman and CEO, Allergan, Inc. "Taxing medical procedures – any medical procedure – is a dangerous precedent. Americans agree that people should be free to make medical decisions, in consultation with their physician, without being forced to pay an extra tax."
The survey further demonstrates that, by a 49% - 30% margin, respondents are more likely to oppose the tax once informed that sixty percent of all people planning to have cosmetic medical procedures report a household income of between $30,000 and $90,000.
"The Senate leadership must have mistakenly believed that this would be an easy way to 'soak the rich' and meet their budget targets for health reform," Pyott said. "But the tax would impact middle class Americans. President Obama promised not to raise taxes on the middle class. Yet that is exactly what the cosmetic tax would do."
The tax on cosmetic medical procedures was not included in any of the five health reform bills developed and debated in Senate and House Committees. According to the Congressional Budget Office, it is projected to raise approximately $5.6 billion over ten years toward the $856 billion price tag for the proposed senate health reform bill. However, a similar tax in New Jersey has realized less than one-third of the anticipated revenue, making a cosmetic tax not only a bad idea but an unreliable way to fund health reform.
According to the survey, there is no significant difference between men and women in their opposition to the proposed tax. On the other hand, respondents over the age of 45 are much more likely to oppose the tax, with opposition increasing among older respondents.
The survey is being released as part of a nationwide campaign by Allergan, Inc., in coordination with national medical and nursing societies, manufacturers and patients across the nation, to alert Americans to the last-minute insertion of the tax on cosmetic medical procedures into the health reform bill and to urge its removal. In less than a week, nearly 10,000 people have signed a petition to the U.S Senate opposing the tax and more than 7,500 letters have been sent to U.S. Senators from patients, clinicians and activists.
About the Survey
This survey was conducted by Opinion Research Corporation among a national probability sample of 1,014 adults comprising 506 men and 508 women 18 years of age and older, living in private households in the continental United States. Interviewing was completed during the period December 3-6, 2009.
About Allergan, Inc.
Founded in 1950, Allergan, Inc., with headquarters in Irvine, California, is a multi-specialty health care company that discovers, develops and commercializes innovative pharmaceuticals, biologics and medical devices that enable people to live life to its greatest potential – to see more clearly, move more freely, express themselves more fully. The Company employs more than 8,500 people worldwide and operates state-of-the-art R&D facilities and world-class manufacturing plants. In addition to its discovery-to-development research organization, Allergan has global marketing and sales capabilities with a presence in more than 100 countries.
Forward-Looking Statements
This press release contains "forward-looking statements", including the statements by Mr. David Pyott, Chairman and CEO of Allergan, Inc. and other statements regarding the proposed inclusion of a five percent tax on cosmetic medical procedures. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Allergan's expectations and projections. Risks and uncertainties include, among other things, general industry and market conditions; technological advances and patents attained by competitors; challenges inherent in the research and development and regulatory processes; challenges related to product marketing, such as the unpredictability of market acceptance for new products and/or the acceptance of new indications for such products; inconsistency of treatment results among patients and the potential for product failures; unknown risks associated with the investigational devices that are the subject of clinical trials; potential difficulties in manufacturing new products; general economic conditions; and governmental laws and regulations affecting domestic and foreign operations. Allergan expressly disclaims any intent or obligation to update these forward-looking statements except as required to do so by law. Additional information concerning these and other risk factors can be found in press releases issued by Allergan, as well as Allergan's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Risk Factors" in Allergan's 2008 Form 10-K and Allergan's Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009. Copies of Allergan's press releases and additional information about Allergan is available on the World Wide Web at www.allergan.com or you can contact the Allergan Investor Relations Department by calling (714) 246-4636.
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SOURCE Allergan, Inc.
