[Congressional Record Volume 156, Number 99 (Tuesday, June 29, 2010)]
[House]
[Pages H4934-H4936]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
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FIREARMS EXCISE TAX IMPROVEMENT ACT OF 2010
Mr. KIND. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 5552) to amend the Internal Revenue Code of 1986 to require that
the payment of the manufacturers' excise tax on recreational equipment
be paid quarterly and to provide for the assessment by the Secretary of
the Treasury of certain criminal restitution, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5552
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Firearms Excise Tax
Improvement Act of 2010''.
SEC. 2. TIME FOR PAYMENT OF MANUFACTURERS' EXCISE TAX ON
RECREATIONAL EQUIPMENT.
(a) In General.--Subsection (d) of section 6302 of the
Internal Revenue Code of 1986 (relating to mode or time of
collection) is amended to read as follows:
``(d) Time for Payment of Manufacturers' Excise Tax on
Recreational Equipment.--The taxes imposed by subchapter D of
chapter 32 of this title (relating to taxes on recreational
equipment) shall be due and payable on the date for filing
the return for such taxes.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to articles sold by the manufacturer, producer,
or importer after the date of the enactment of this Act.
SEC. 3. ASSESSMENT OF CERTAIN CRIMINAL RESTITUTION.
(a) In General.--Subsection (a) of section 6201 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(4) Certain orders of criminal restitution.--
``(A) In general.--The Secretary shall assess and collect
the amount of restitution under an order pursuant to section
3556 of title 18, United States Code, for failure to pay any
tax imposed under this title in the same manner as if such
amount were such tax.
``(B) Time of assessment.--An assessment of an amount of
restitution under an order described in subparagraph (A)
shall not be made before all appeals of such order are
concluded and the right to make all such appeals has expired.
``(C) Restriction on challenge of assessment.--The amount
of such restitution may not be challenged by the person
against whom assessed on the basis of the existence or amount
of the underlying tax liability in any proceeding authorized
under this title (including in any suit or proceeding in
court permitted under section 7422).''.
(b) Exception From Certain Restrictions on Assessment and
Collection.--
(1) No petition to tax court, no restriction on further
deficiency letters, etc.--Subsection (b) of section 6213 of
such Code is amended by adding at the end the following new
paragraph:
``(5) Certain orders of criminal restitution.--If the
taxpayer is notified that an assessment has been or will be
made pursuant to section 6201(a)(4)--
``(A) such notice shall not be considered as a notice of
deficiency for the purposes of subsection (a) (prohibiting
assessment and collection until notice of the deficiency has
been mailed), section 6212(c)(1) (restricting further
deficiency letters), or section 6512(a) (prohibiting credits
or refunds after petition to the Tax Court), and
``(B) subsection (a) shall not apply with respect to the
amount of such assessment.''.
(2) Time limitations on assessment and collection.--
Subsection (c) of section 6501 of such Code is amended by
adding at the end the following new paragraph:
``(11) Certain orders of criminal restitution.--In the case
of any amount described in section 6201(a)(4), such amount
may be assessed, or a proceeding in court for the collection
of such amount may be begun without assessment, at any
time.''.
(c) Effective Date.--The amendments made by this section
shall apply to restitution ordered after the date of the
enactment of this Act.
SEC. 4. BUDGETARY PROVISIONS.
(a) Time for Payment of Corporate Estimated Taxes.--The
percentage under paragraph (2) of section 561 of the Hiring
Incentives to Restore Employment Act in effect on the date of
the enactment of this Act is increased by 0.25 percentage
points.
(b) Paygo Compliance.--The budgetary effects of this Act,
for the purpose of complying with the Statutory Pay-As-You-
Go-Act of 2010, shall be determined by reference to the
latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the
Congressional Record by the Chairman of the House Budget
Committee, provided that such statement has been submitted
prior to the vote on passage.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Wisconsin (Mr. Kind) and the gentleman from Wisconsin (Mr. Ryan) each
will control 20 minutes.
The Chair recognizes the gentleman from Wisconsin (Mr. Kind).
General Leave
Mr. KIND. Mr. Speaker, I ask unanimous consent that all Members have
5 legislative days to revise and extend their remarks and insert
extraneous material into the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Wisconsin?
There was no objection.
Mr. KIND. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, today I rise in support of H.R. 5552, the Firearms
Excise Tax Improvement Act of 2010. It's a bill that I introduced with
54 bipartisan cosponsors, along with my friend and colleague from
Wisconsin (Mr. Ryan), that will strengthen wildlife conservation
funding in America by helping firearm and ammunition manufacturers grow
their businesses.
H.R. 5552 changes the excise tax payment schedule for firearm and
ammunition manufacturers from a biweekly reporting requirement to a
quarterly schedule, like every other industry in the country. The bill
would also allow the IRS to collect restitution debt that has been
court ordered to be paid in criminal tax cases.
This commonsense legislation will allow for the creation of jobs for
working families, save money for businesses, increase investment in
wildlife conservation, and simplify and make consistent the payment of
excise tax across all industries, all of which is paid for and fully
compliant with pay-as-you-go budgeting rules.
There is very broad and bipartisan support from both sides of the
aisle for this bill. This legislation is supported by every major
conservation group, along with the firearms industry. It is in short a
win-win-win for families, businesses, and conservation efforts across
the country.
I have long been a supporter of conservation efforts. As a former
cochair of the Congressional Sportsman's Caucus, I am pleased this bill
benefits sportsmen and conservationists alike and continues to
contribute critical funding for the development of wildlife restoration
projects across the country, ensuring that our natural resources are
protected for future generations.
I regularly enjoy spending time outdoors with my family, especially
my two little boys. The ability to enjoy outdoor recreational
activities like hunting and fishing are not only important for our
peace of mind, but back home in Wisconsin it also contributes over $9.7
billion annually to the Wisconsin economy and supports 129,000 jobs,
generating $570 million in annual State tax revenue. I am sure this is
a story that we can talk about from State to State to State.
Also, companies in Wisconsin that manufacture, distribute, and sell
firearms, ammunition, and hunting equipment employ as many as 2,050
people in the State and generate an additional 2,300 jobs in supplier
and ancillary industries. Across the Nation, these companies employ as
many as 183,000 people.
Not only does the manufacture and sale of firearms and hunting
supplies create jobs, but the industry also contributes to the economy
as a whole. In
[[Page H4935]]
fact, the 2010 firearms and ammunition industry was responsible for as
much as $27.8 billion in total economic activity throughout the
country.
The firearm and ammunition excise tax is the major revenue source for
funding the Wildlife Restoration Trust Fund, also known as the Pittman-
Robertson Trust Fund. Last year, firearm and ammunition manufacturers
contributed approximately $450 million to wildlife conservation through
the excise tax payments.
All the industry is asking to do, Mr. Speaker, is change the biweekly
reporting requirement of the excise tax to a quarterly reporting
requirement, just like every other industry. There are stories that
were brought to my attention that some of the smaller manufacturers
actually had to take out loans in order to meet the biweekly excise tax
requirement payment right now, which obviously interrupts their cash
flow and makes it tough for them to reinvest in their businesses,
expand their operations, and hire more people. We are just fixing that
anomaly with this legislation.
I want to thank my friend, my colleague from Wisconsin, for his
support for the legislation, as well as the chair and ranking member of
the Ways and Means Committee and the staff for helping us get this
legislation in order. I would also like to express my sincere gratitude
to the various groups who provided invaluable feedback on this
legislation, and in particular the National Shooting Sports Foundation,
the Congressional Sportsmen's Foundation, the NRA, the Safari Club
International, Ducks Unlimited, and many, many others.
I urge my colleagues to support this legislation, and I reserve the
balance of my time.
Mr. RYAN of Wisconsin. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I want to echo the sentiment from my friend and
colleague from Wisconsin. We introduced this legislation together. We
have 76 cosponsors. It's a very simple issue.
Number one, we have a Pittman-Robertson fund, which is a user-fee for
hunting and fishing. If you buy firearms, you buy ammunition, there is
an excise tax that is paid which goes to the Pittman-Robertson Trust
Fund for conservation and habitat management.
As the cochair of the Sportsmen's Caucus here in Congress, the
largest bipartisan, bicameral caucus in Congress, our job in the caucus
is to make sure that we protect not only hunting and fishing rights,
but also hunting and fishing habitat. And there is a snafu in the law
here, and that's simply what we are trying to clear up. This is a bill
that's fully paid for.
This bill is very, very simple. Most of Pittman-Robertson taxes are
collected on a quarterly basis. Unfortunately, though, with respect to
ammunition and firearms, it's done on a biweekly basis. That is a huge
unnecessary burden for manufacturers. There are lots of small
manufacturers, Kolar in Racine, Premium Shotguns, you name it. There
are lots of small manufacturers out there, and they don't get the cash
flow through their business to be able to pay this excise tax on this
biweekly basis. They don't get the money from the retailers in time to
cover the tax expenses. And therefore what's happening is we are making
these manufacturers, especially the smaller ones, have to go out and
get loans in order to pay the excise taxes.
All this simply does is harmonize the tax payments schedule to jibe
with the other excise taxes that are paid into the Pittman-Robertson
fund to a quarterly basis. That simple.
So let's take away this very burdensome regulation, this very
burdensome tax compliance regime on small and large manufacturers of
firearms and ammunition, harmonize it with the rest of the Pittman-
Robertson excise tax collection system, and make sure that these small
businesses, which are really struggling, which are the backbone of the
conservation funding system, which are huge providers of jobs and
recreation in States like Wisconsin and all throughout America, let's
just get this cleaned up. Let's pass it. It's bipartisan. It's paid
for. This is one of those issues that's sort of rare these days where
we have come together to get something that makes perfect common sense.
I yield such time as he may consume to the gentleman from Kentucky
(Mr. Davis).
Mr. DAVIS of Kentucky. I rise today in support of H.R. 5552, the
Firearms Excise Tax Improvement Act of 2010, a bill to modify the due
date for the payment of certain manufacturers' excise taxes, including
those imposed on firearms and ammunition.
The bill has the support of Members on both sides of the aisle, as
well as the NRA and a number of wildlife conservation groups. This bill
is a commonsense fix that will simplify the manner in which
manufacturers make payments for excise taxes, which help to finance the
Pittman-Robertson conservation fund.
The current schedule requires biweekly deposits owed on the excise
taxes. That creates an undue burden on our many small sporting goods
and sportsmen's outlets, small businesses like RLC Shooting, Garrett
Guns, and Mark's Guns, just in my local community, that support the
sportsmen community, hunters and shooters that give a lot back,
particularly in the maintenance of the nature areas where they work.
These biweekly tax payments are expensive, they create additional
overhead; and, frankly, this time-consuming process consumes dollars
that in fact can be used for job creation on the outside.
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We believe it could free up as much as $22 million for these
businesses, especially with small businesses, to grow, to hire jobs,
and to have a more positive effect on their community as well as
expanding a base of additional customers for that excise tax in the
long run. It is a great bill supported by all the associated parties.
I urge my colleagues to adopt this sensible measure.
Mr. RYAN of Wisconsin. At this time, I yield such time as he may
consume to the gentleman from California (Mr. Herger), a distinguished
senior member of the Ways and Means Committee.
Mr. HERGER. I thank my friend from Wisconsin for yielding.
Yesterday, the Supreme Court delivered a victory for our
constitutional freedoms by upholding the right of individual citizens
to keep and bear arms. To fully honor the Second Amendment, we must
also be vigilant against regulations that place unnecessary burdens on
manufacturers of guns and ammunition. The requirement for manufacturers
to pay Federal excise tax biweekly is costly and does not improve tax
compliance or public safety.
H.R. 5552 is a commonsense bill that doesn't add to the deficit and
will help ensure law-abiding Americans have access to American-made
firearms. It is supported by the NRA and a number of hunting and
conservation groups.
I urge the passage of this legislation.
Mr. RYAN of Wisconsin. Mr. Speaker, I yield myself the balance of my
time.
I simply want to say this is a commonsense solution that ought to be
passed. It harmonizes the schedule. It takes a burden off of
businesses, and I think the gentleman from California put it well.
Yesterday, we saw a great strike for liberty from the Supreme Court
where they reaffirmed the individual's right to keep and bear arms in
this country. That is now an issue that has been set by the Supreme
Court where individuals have rights in this Nation and that the job of
government is to protect our equal, natural rights.
So I think it is very fitting that this, on the day after the Supreme
Court reaffirmed the individual's right to keep and bear arms,
regardless of where they live in America, as citizens of America, that
we ought to help ease this burden on the manufacturers of firearms and
of ammunition so that they can get back to the business not of just tax
collecting on a biweekly basis but of producing, of selling, of
creating jobs, and of getting this country moving again.
With that, Mr. Speaker, I yield back the balance of my time.
Mr. KIND. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, in conclusion, I again want to thank my colleagues, Mr.
Ryan and those on the Ways and Means Committee, for their strong
support of the bill. It has received bipartisan support. I'm not aware
of any opposition by any of my colleagues to this legislation.
[[Page H4936]]
There's a broad coalition of support outside Congress between the
conservation and outdoor recreation community, along with the firearms
industry, many people who do care about those opportunities that we
enjoy as a shooting sport but also hunting, fishing, recreation.
This merely corrects, as my colleague pointed out, an anomaly that's
existed in the Tax Code for too long. It's not fair to single out one
industry for a biweekly reporting requirement when everyone else has a
quarterly reporting requirement, and, quite frankly, cash flow problems
have been an issue. That's the reason why it was brought to our
attention. At a time when the economy is languishing, we need to be
working with businesses, large and small, to be able to expand job-
creating opportunities. This bill is a small step in achieving that.
So I would encourage my colleagues to support the bill.
Ms. JACKSON LEE of Texas. Mr. Speaker, I rise in support of H.R.
5552, the Firearms Excise Improvement Tax Act of 2010. I would like to
thank Chairman Levin and Congressman Kind for their leadership in
bringing this important bill to the floor.
H.R. 5552 will amend the Internal Revenue Code to require: (1) excise
taxes on recreational equipment to be due and payable on the date for
filing the return for such taxes (i.e., quarterly); and (2) the
Secretary of the Treasury to assess and collect, in the same manner as
delinquent taxes are assessed and collected, mandatory orders of
restitution for victims of crime. The bill has the support of Members
on both sides of the aisle. The funding will also create jobs for
Americans across the country.
Mr. Speaker, it must be stated that in a time when firearms are being
used to commit heinous crimes against individuals in this country, it
is important that we remember to ensure that we use strict measures to
ensure that we can track the owners of firearms and requiring such
excise taxes is one way to do so.
In this Congress, I introduced H.R. 257, The Child Gun Safety and Gun
Access Prevention Act of 2009--which would amend the Brady Handgun
Violence Prevention Act to: (1) raise the age of handgun eligibility to
21 (currently, 18); and (2) prohibit persons under age 21 from
possessing semiautomatic assault weapons or large capacity ammunition
feeding devices, with exceptions.
It would also increase penalties for: (1) a second or subsequent
violation by a juvenile of Brady Act provisions or for a first
violation committed after an adjudication of delinquency or after a
state or federal conviction for an act that, if committed by an adult,
would be a serious violent felony; and (2) transferring a handgun,
ammunition, semiautomatic assault weapon, or large capacity ammunition
feeding device to a person who is under age 21, knowing or having
reasonable cause to know that such person intended to use it in the
commission of a crime of violence.
The bill also would prohibit any licensed importer, manufacturer, or
dealer from transferring a firearm to any person (other than a licensed
importer, manufacturer, or dealer) unless the transferee is provided
with a secure gun storage or safety device. Authorizes the Attorney
General to suspend or revoke any firearms license, or to subject the
licensee to a civil penalty of up to $10,000, if the licensee has
knowingly violated this prohibition.
H.R. 257 would prohibit keeping a loaded firearm or an unloaded
firearm and ammunition within any premises knowing or recklessly
disregarding the risk that a child: (1) is capable of gaining access to
it; and (2) will use the firearm to cause death or serious bodily
injury. It would also require the parent or legal guardian of a child
to ensure that a child attending a gun show is accompanied by an adult.
My bill would also authorize the Attorney General to provide grants
to enable local law enforcement agencies to develop and sponsor gun
safety classes for parents and children. The bill also expresses the
sense of Congress that each school district should provide or
participate in a firearms safety program for students.
Yesterday, in its second major ruling on gun rights in three years,
the Supreme Court extended the federally protected right to keep and
bear arms to all 50 states. We know that the decision will be hailed by
gun rights advocates and comes over the opposition of gun control
groups, the city of Chicago and four justices.
Justice Samuel Alito wrote for the five justice majority saying ``the
right to keep and bear arms must be regarded as a substantive
guarantee, not a prohibition that could be ignored so long as the
States legislated in an evenhanded manner.''
The ruling builds upon the Court's 2008 decision in D.C. v. Heller
that invalidated the handgun ban in the nation's capital. Moreover,
that decision held that the Second Amendment right to keep and bear
arms was a right the Founders specifically delegated to individuals.
The justices affirmed that decision and extended its reach to the 50
states. Today's ruling also invalidates Chicago's handgun ban.
The irony is that there have been 209 homicides so far this year in
2010 in Chicago. We need to strike a reasonable balance between
upholding our Second Amendment rights to bear arms, and at the same
time ensure that we enact appropriate laws to address criminal behavior
and to ensure the health and safety of Americans across this nation.
I hope that we can work towards a reasonable solution whereby gun
owners are not deprived of their right to hunt, fish, and use their
firearms in law-abiding manners, and also provide the most effective
measures to control gun violence and limit injury and death to
Americans as a result of unlawful firearm use.
Mr. KIND. I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Wisconsin (Mr. Kind) that the House suspend the rules
and pass the bill, H.R. 5552, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. KIND. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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