[Congressional Record (Bound Edition), Volume 156 (2010), Part 9]
[House]
[Pages 12030-12033]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1400
              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

[[Page 12031]]

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 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

[[Page 12032]]

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.

                              {time}  1410

  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.
  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

[[Page 12033]]

gun violence and limit injury and death to Americans as a result of 
unlawful firearm use.
  Mr. TIAHRT. Mr. Speaker, this legislation is long overdue. For years, 
there have been inconsistencies in the manner in which manufacturers 
pay their taxes. Under current law, firearm and ammunition 
manufacturers pay excise taxes into the fund on a bi-weekly basis. All 
other manufacturers pay on a quarterly basis. This legislation will 
change this inconsistency and bring a little commonsense into our crazy 
tax system.
  I am pleased to be a cosponsor of H.R. 510, to amend the Internal 
Revenue Code to require that the payment of the manufacturers' excise 
tax on recreational equipment be paid quarterly. The frequency of tax 
payments for the firearm and ammunition manufacturers is a burden on 
the industry. In fact, some manufacturers are forced to secure short-
term loans to pay their taxes, thus incurring additional expenses and 
adding to administrative overhead. The end result is that money is 
diverted away from core business areas to finance tax payments.
  Through this legislation, firearm and ammunition manufacturers will 
now be able to reinvest more funds into researching and developing new 
products, purchasing new manufacturing machinery, and increasing 
marketing and outreach to the hunting and sport shooting community. The 
federal government will get their taxes, on a quarterly basis as it 
does from every other manufacturer, so no revenue will be lost.
  I urge my colleagues to support the Firearms Excise Tax Improvement 
Act.
  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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