I do not wish to make light of this discussion of one of the most serious political and economic issues of our times. My initial reaction to the 100B attachment to the bill was- Yeah, sweeten it up with some pork! etc etc.
I had heard a mention of the arrows thing, but didn't think anything much of it except through my very cynical filter until last night at a meeting where an old friend who is a resident summer youth camp Director mentioned, " We'll save 39 cents on each arrow we have to buy for summer camp!" Now, he is a very smart, political knowledgeble guy, who I'm sure was being ironic. After all, 800B, and well save 39 cents each on a couple hundred arrows! After reviewing Sec 503 of this bill vs sec 4161 of the tax code it amends, this appears to me to a technical correction, and these particular arrows which are exempted were never intended to be subject to the excise tax in the first place. (The excise tax was for bows and accessories of 30 lb draw weigh or more. Typically youth bows are in the under 30 lb class.)
Unfortunately in our politically toxic environment these issues cannot be addressed in the normal course of business and have to be attached to monumental bills. I think a review of many of these provisons would show them to be reasonable extentions of current law about to expire, or technical corrections, neither of which had been addressed otherwise in the current Congress.
Lay off the wooden arrows issue: it's not as ridiculous as it looks.
By the way I was unaware that there is a manufacturer's (federal) excise tax of 10-11% on all sporting goods, including fishing rod, tackle boxes etc. We argue about income and property taxes, but I guess they get us this way, too!
-CITE- 26 USC Sec. 4161 01/03/2007
-EXPCITE- TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 32 - MANUFACTURERS EXCISE TAXES
Subchapter D - Recreational Equipment
PART I - SPORTING GOODS
Sec. 4161. Imposition of tax…
...2) Arrows
(A) In general
There is hereby imposed on the first sale by the manufacturer, producer, or importer of any shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow which after its assembly -
(i) measures 18 inches overall or more in length, or
(ii) measures less than 18 inches overall in length but is
suitable for use with a bow described in paragraph (1)(A),
(any bow which has a peak draw weight of 30 pounds or more)
a tax equal to 39 cents per shaft.
(B) Adjustment for inflation
(i) In general
In the case of any calendar year beginning after 2005, the 39-cent amount specified in subparagraph (A) shall be increased by an amount equal to the product of –
(I) such amount, multiplied by
(II) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year, determined by
substituting "2004" for "1992" in subparagraph (B) thereof.
SEC. 503. EXEMPTION FROM EXCISE TAX FOR CERTAIN WOODEN ARROWS DESIGNED FOR USE BY CHILDREN.
(a) In General- Paragraph (2) of section 4161(b) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:
`(B) EXEMPTION FOR CERTAIN WOODEN ARROW SHAFTS- Subparagraph (A) shall not apply to any shaft consisting of all natural wood with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow which after its assembly--
`(i) measures 5/16 of an inch or less in diameter, and
`(ii) is not suitable for use with a bow described in paragraph (1)(A).'.
(b) Effective Date- The amendments made by this section shall apply to shafts first sold after the date of enactment of this Act.
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