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Guns and Taxes

Gun trainingWhat do guns and taxes have in common?  More than you may realize.

Heated debate on gun control is causing a re-emergence of arguments on the effect of excise taxes, sometimes referred to as “hidden” taxes, as analysts determine the economic impact of changing laws.

Early on, excise taxes were termed “luxury” taxes affecting mostly higher income individuals.   Excise tax is based on quantity and is a flat amount per item.  Some excise taxes are called “sin” taxes.

The first excise taxes were on carriages and whiskey.  Excise taxes on gasoline and telephones were called “luxury” taxes when they were first imposed.  Now most Americans consider such items necessities.  Raising these tax rates can have dramatic affects on consumer budgets as well as trigger a downturn in consumption.

Consider today’s gun control debate:   The Alcohol and Tobacco Tax and Trade Bureau collects excise taxes on firearms and ammunition from manufacturers and distributors before the products are touched by a consumer.  Numbers show gun sales alone result in annual business and excise tax collections of nearly $2.07 billion.  

Some experts say just the threat of government gun control has been an effective means of raising tax revenues as fear motivates consumers to stock up.  In the last fiscal year, the ATTTB reports tax revenues on the sale of firearms and ammunition have risen 45 percent which is the highest annual increase on record.

Yet, if prices and taxes are too high, or products are banned from the marketplace, it limits the number of people who are able to purchase products, thereby cutting sales and decreasing tax revenues.

No matter which side of the firearms debate you may be on, it’s likely you can’t escape paying excise taxes.  Among hundreds of items that fall under federal excise tax mandates are:

  • tires
  • gasoline
  • coal
  • vaccines
  • firearms
  • communications services including your telephone
  • air travel
  • heavy trucks and trailers
  • "gas guzzler" vehicles and more… 

Currently, most federal tax rates on excise taxes range from 1 percent to 15 percent or higher, when coupled with other types of taxes.

The excise tax on firearms and ammunition is generally 10 and 11 percent.   Many states collect excise taxes on top of these rates.  This is before sales taxes are calculated at the time of sale.

At a time of critical economic conditions and concerns for the country’s fiscal future, experts urge that debate about changes regarding taxation be as carefully considered as the compassion-motivated moral arguments.


Give Yourself a Chance to Think

So often, busy people like you are too consumed with putting out fires to step back and consider the big picture.  It’s vitally important to give yourself a chance to think. 

Let’s face it, today we often have more to do than the day’s time allows.  It’s affecting our ability to think things through clearly and make the right decisions when it comes to our money.

There are more considerations than ever before about how we use our money and where we place it to make it grow.  Our resources are limited and varied, and there are different methods to determine how well our choices are working.  It’s confusing and hard to plan and execute how things work together.

That’s why McRuer CPAs is offering our new service package called Decision Maker Plus. It gives you the ability to gather together all your financial data and strategies in one place at the same time, to ensure everything works together to meet your goals.

Take a look at our introductory brochure on Decision Maker Plus.

Through Decision Maker Plus our team of CPAs can provide you a way to coordinate all your plans and present them in a way that makes sense to you.  We can help you analyze, plan and implement strategies to meet your goals while coordinating with your other approved professionals.

Using Decision Maker Plus gives you access to our experienced team and…

*proactive planning and strategy implementation,
*priority response communications,
*cutting-edge and highly efficient information sharing technology,
*secure online data storage and data sharing portals,
*and flexible scheduling for after hours or weekend appointments.

Our Decision Maker Plus Services include:

  • Income Tax Planning
  • Estate Tax Planning
  • Wealth accumulation and Protection Services
  • Business Startup, Planning and Expansion Services
  • Generational and Spousal Wealth Transfers assistance
  • Financial Services Incident to Divorce
  • Services for Liquidity Events
  • Education Finance Planning
  • Retirement planning and more.

Think about it. 

Do you really know if everything works together to help you?  If not, call us for a confidential consultation about your goals and we’ll give you a half hour of that consultation for free.

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