Government

Why Every City Needs a Yoga Tax

In D.C., a bill that would expand the sales tax to include services like health-club memberships has drawn the ire of gym and yoga-studio owners. Here's why it's good for cities—and for consumers. 
Matt Madd/Flickr

Yoga practitioners in the District of Columbia are tying themselves in knots over a budget proposal that would introduce a sales tax on yoga classes and gym memberships. D.C.'s so-called "yoga tax" even has politicians stretching: D.C. Council member and mayoral candidate David Catania has pledged to introduce an amendment nixing the tax before the final vote on the budget on June 24. Muriel Bowser, another Council member who is running for mayor, is also against it.

If the Council wimps out, it will be a shame—for the entire District, gym rats included. The gym tax represents an expansion of the sales tax that fits today's economy, which has long been shifting from a products footing to a services one. More cities need to take the lead in that regard. And cities should emulate this specific category of services tax: Higher prices for gyms and yoga studios could help to clear residents' thinking about what they get out of the bargain.