Bloomberg on PBA's Efforts to Change Tip Tax in Beauty Industry

By Anne Moratto | 05/31/2013 12:17:00 PM


Bloomberg Business Week featured a story on the Professional Beauty Association's efforts to  change the way the government taxes tips earned in the beauty industry.

Reporter Marc Heller shares that "Under current law, salon owners pay Social Security and Medicare taxes on workers’ tips, even though the income often passes directly from customer to employee. Salon owners process tips paid for with credit cards, but don’t retain income on the transactions."

"The proposed tax/tip legislation that PBA supports does not raise taxes, promotes tax equality and most importantly gives salon owners additional resources to invest back in their employees and business," says  Myra Irizarry, Director of Government Affairs & Industry Relations, PBA.  "PBA encourages salon owners to join our campaign and help our elected officials understand the benefits that passage would mean to their business and our industry as a whole."

Learn more about Tax Equalization and Compliance  and about how the PBA continues to advocate for the industry.







Anne Moratto’s well-rounded beauty career includes years in beauty public relations, beauty marketing, beauty manufacturing, and now, with MODERN SALON, in beauty publishing. The through-line has been an intense interest in all things beauty and a sincere appreciation for the skilled artists and entrepreneurs who make the industry so vital, compelling and creative. Anne, a native of Wisconsin, lives with her family in Los Angeles, CA, and is MODERN SALON’s West Coast Beauty and Special Markets Editor. She can be reached at


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